Econ 101 MC

Econ 101 MC - policy-making body is called the CBO(c it...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Miah Williams Extra Credit MC Chapter 16 1. Assume that production in the United States is valued at $10,000. National income is therefore $10,000. Of their income, workers pay $1,000 in taxes, save $500, spend $8,000 on consumer goods, and spend $500 on imports. Businesses spend $1,000 in new investment spending. And, foreigners spend $500 on exports. In order to avoid any problems of inflation or unemployment, the government should have a budget deficit or surplus of: (a) 0 (b) $ 500 surplus (c) $500 deficit (d) $1,000 deficit (e) $2,000 deficit 2. Which of the following is true about the Federal Reserve System? ( a) its seven Board members are appointed by the President of the United States (b) its main
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: policy-making body is called the CBO (c) it insures checking accounts against bank failure (d) it accepts deposits from individuals and makes loans for mortgages (e) All of the above 3. If the official federal budget shows a deficit of $200 billion while the structural budget is has a surplus of $200 billion, it can be concluded that: (a) the intent of fiscal policy is very expansionary (b) there is hyperinflation (c) the unemployment rate is well above the natural rate (d) state and local governments have large surpluses (e) off-budget spending is counted in the official deficit but not in the structural deficit...
View Full Document

This note was uploaded on 04/30/2011 for the course ECON 101 taught by Professor Balaban during the Spring '07 term at UNC.

Ask a homework question - tutors are online