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Unformatted text preview: rgely by rapidly rising government budget
12. Regular interest payments made to bondholders are called _____ payments.
a) dividend b) diversification c) reserve d) principal e) coupon
13. In the Keynesian model, a $1 billion decrease in autonomous consumption leads to
______ in short-run equilibrium output.
a) a greater than $1 billion increase
d) a $1billion increase
b) more than a $1 billion decrease
e) no change
c) a $1 billion decrease Page 4 of 11 ECO 2013 – Section 0008 – QUIZ IV – Version 1
O. Mikhail – http://www.bus.ucf.edu/omikhail Use the following to answer question 14:
PAE Y = PAE Y* PAE = 600 + .5Y
PAE = 400 + .5Y
PAE = 200 + .5Y 600
400 800 1,200 Output Y Y* 14. Based on the figure, the income expenditure multiplier equals:
a) 2. b) 400. c) 0.5. d) 5. e) 200.
15. At each value of the domestic interest rate, decreases in the riskiness of domestic assets
_____ capital inflows, _____ capital outflows, and _____ net capital inflows.
a) decrease; decrease; decrease
d) increase; increase; decrease
b) increase; decrease; increase
e) increase; increase; increase
c) decrease; increase; decrease
16. Short-term economic fluctuations are _____ in length and severity and ____ to predict.
a) regular; easy
d) irregular; easy
b) constant; easy
e) regular; difficult
c) irregular; difficult
17. In the long run, total spending only influences:
a) productive capacity.
d) potential output.
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- Spring '12