Prelim1_warmup - c.make the market price indeterminate d.make the market quantity indeterminate e.definitely increase the market price f.definitely

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Sheet1 Page 1 ___ 6 Which of the following actions by the Fed will result in a decrease in the money supply? a. Raising the tax rates b. Selling more government securities in the open market. c. Lowering the discount rate. d. Printing more currency or decreasing the reserve requirements e, Part a and part b are both correct ___ 7. When money demand is a positive function of income, which of the following statements is FALSE? a. An increase of autonomous consumption will raise the equilibrium interest rate. b. An increase of autonomous investment will raise the equilibrium interest rate. c. A decrease of government purchases will lower the equilibrium interest rate. d. A decrease in taxes will raise the equilibrium interest rate. e. An increase in money will increase the demand for money ____ 8. A simultaneously decrease in the demand and in the supply of a consumer service will a.definitely increase the market quantity to a new higher level b.definitely decrease the market quantity to a lower level
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: c.make the market price indeterminate d.make the market quantity indeterminate e.definitely increase the market price f.definitely decrease the marker price g.both b and c are correct __ 9. The Federal Reserve (FED) controls the ____________ to alter equilibrium ____________ and shift _______________ a.Interest rate b.Money demand c.Money supply d.Interest rate e.Interest rate Match the definitions US National income is _A. value of production produced within the US borders US Personal Income is _B. Income earned by US citizens Disposable Income is __ C. value of production produced by US citizens US GDP is _D. Income received by the households residing in the US US GNP is __E. Income available for consumption and saving by US households Sheet1 Page 2 money supply money demand interest rate aggregate expenditure interest rate aggregate expenditures money supply aggregate expenditures C will fall money demand but C will fall...
View Full Document

This note was uploaded on 04/03/2008 for the course ECON 1120 taught by Professor Wissink during the Spring '05 term at Cornell University (Engineering School).

Page1 / 2

Prelim1_warmup - c.make the market price indeterminate d.make the market quantity indeterminate e.definitely increase the market price f.definitely

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online