Which of the following is an example of an automatic stabilizer A cost of

Which of the following is an example of an automatic

This preview shows page 3 - 5 out of 8 pages.

15) Which of the following is an example of an automatic stabilizer?A) cost of living adjustments to Social Security paymentsB) unemployment benefitsC) a temporary tax rebateD) all of the above16) A federal deficit of $300 billion means that17) Other things being equal, what is the effect of deficit spending on interest rates?18) When money is accepted as payment in a market transaction, it is functioning as a19) The Board of Governors of the Federal Reserve System isA) elected by the general public.B) composed of seven members who are appointed by the President and approved by the Senate.C) composed of representatives from the country's 12 largest commercial banks.D) composed of 12 members of the Senate and the U.S. House of Representatives.20) If the money multiplier is 2.4 and the Fed buys $8 million in securities on the open market, transaction deposits could potentially21) An increase in the money supply typically leads to22) The effect of an increase in the supply of money is
Background image
23) If we assume that velocity is constant, and if the money supply increases by 6 percent, we would expect, ceterisparibus, that the price level wouldA) increase by 3 percent.B) increase by 6 percent.C) decrease by 3 percent.D) decrease by 6 percent.
Background image
Image of page 5

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture