Economics - Macroeconomics. Quiz Level 5

1

An investment bank purchases securities from a corporation at a predetermined price and then resells them in the market. This process is called

2

<img src="https://sciemce.com/files/4/ppg__1350818190831__f1q679g1.jpg" alt="" style="vertical-align: 0.0px;" height="526" width="450" />Choose the letter of the curve in Figure 1.2 that best represents a production possibilities curve for two goods that obey the law of increasing opportunity costs:

3

Which of the following can cause a leftward shift in the aggregate supply curve?

4

Economic Fact

5

The antebellum period was characterized by many changes in tariff rates. What best describes the effect of removing a tariff on foreign cotton textiles?

6

If the absolute value of the tax elasticity of supply is 0.5, a tax increase of 10 percent will

7

The United States' first income tax was imposed during

8

Which of the following is NOT one of the "unholy trinity" of events that interact to fuel an explosive hyperinflation?

9

The collapse of the subprime mortgage market increased the spread between Baa and default-free U.S. Treasury bonds. This is due to

10

What are the five functions performed by financial intermediaries?

11

Which of the following would not be included in a definition of risk?

12

Suppose the real money demand function is Md/P = 2400 + 0.2Y - 10,000 (r + πe). Assume M = 4000, P = 2.0, πe = .03, and Y = 5000. The real interest rate that clears the asset market is

13

Evidence from the time period 1960-1980 indicates that inflation in the United States resulted from

14

Suppose output is $35 billion, government purchases are $10 billion, desired consumption is $15 billion, and net exports are $4 billion. Then desired investment equals

15

Higher home values can increase output in the economy if:

16

Key influences on the valuation of economic profits include ________

17

According to the misperceptions theory, if the Fed wanted to use monetary policy to influence the real economy, it would have to

18

Nominal GDP measures changes in:

19

Other things equal, an adverse supply shock would

20

Based on the graph above, if the economy is at point 2, then (assuming no price shocks and no changes in actual and potential output) the inflation rate next period will be ________ percent

21

An index constructed by Alberto Alesina and Lawrence Summers measuring central bank independence for a sample of industrialized countries during the late 1980s notes that the a. most countries have completely independent central banks. b. countries with less independent central banks had lower inflation rates. c. the most independent central banks were those of Switzerland and Germany,

22

The interest rate at which banks lend each other Eurodollars is known as:

23

Which of the following most likely describes economics?

24

The quantity of goods and services that can be produced by one worker or by one hour of work is known as

25

A barter economy

26

When an individual obtains a car loan and makes all of the regular monthly payments, the sum of the payments made will exceed the purchase price of the car. This is due primarily to the core principle:

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Economics - Macroeconomics. Quiz Level 5

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