QZ5 studyguide

12 regular interest payments made to bondholders are

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

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: rgely by rapidly rising government budget deficits. 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 600 400 200 45 400 800 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. b) infla...
View Full Document

This note was uploaded on 03/31/2012 for the course ECON 112 taught by Professor Merinoff during the Spring '12 term at SUNY Jefferson.

Ask a homework question - tutors are online