Macroeconomics - Macroeconomics Final Exam J. F. Garcia 1....

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Macroeconomics Final Exam J. F. Garcia 1. A balanced budget occurs when: a. the national debt is reduced to zero dollars b. a budget deficit during one year is matched by a budget surplus in the next year c transfer payments equal tax receipts d. government expenditures equal tax receipts e. the deficit-GNP ratio equals one 2. A curve showing the relationship. between tax. rates and tax revenues is called a: a. Phillips curve b. Gonpertz curve C. Gaussian curll7e d. Laffer curve 3. Required reserves are: a. the amount of reserves a bank must hold against its, deposits as mandated by the Fed b. the amount of cash a bank must hold against its deposits as mandated by the Fed c. the amount of deposits a bank must hold against all other deposits as mandated by the U.S. Treasury d. the amount of reserves a bank must hold against all its asset-s as mandated by the Fed 4. Reserves held beyond the required amount are called., a. redundant reserves b. Precautionary reserves c. excess reserves d. surplus reserves 5. The interest rate that a commercial bank pays when it borrows from the Fed is called the: a. discount rate b. exchange rate c. federal rate d. bank rate 6. The monetary tool the Fed uses most often to control the money
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supply is: a. open market operations b. the required-reserve ratio c. The discount rate d. the federal funds rate 7. In controlling the nation's money supply, the Fed is obligated to seek the advice of: a. the Congress b. the President c. the Treasury d. a11 of the above e. none of the above 8. A federal budget deficit: a. occurs when expenditures outstrip tax receipts b. occurs when tax receipts outstrip expenditures c. Occurs when transfer payments outstrip tax receipts d. will always result when Congress and the president cannot agree on expenditures e. occurs when monetary policy works in the opposite direction of fiscal policy 9. Which of the following is a correct listing of money's functions? a. source of credit, value of transaction costs, unit of barter b. medium at barter, medium of exchange, medium of transactions c. unit of barter, unit of account, 2L unit of income d. store of value, store of exchange, measure of account e. store of value, medium of exchange, unit of account 10. Marginal tax rate is equal to: a. the total amount of a person's tax divided by the payment divided by the total amount of the person's taxable income. b. the total amount of a person's tax payment divided by the change in the persons
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Macroeconomics - Macroeconomics Final Exam J. F. Garcia 1....

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