In the short run, macroeconomic analysis focuses on ________, while in the long run, the focus is on ________
A) fiscal policy; monetary policy
B) short-run economic growth; population demographics
C) unemployment; inflation
D) the business cycle; long-run economic growth
D
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The main policy designer of the Federal Reserve system is the
A) 12 district banks. B) President and Congress. C) Federal Open Market Committee. D) Council of Economic Advisors.
Features of the U.S. federal government expenditure and taxation programs that tend to automatically slow the economy during times of high economic activity and boost the economy during periods of recession are called:
A) discretionary expenditures. B) automatic stabilizers. C) non-automatic stabilizers. D) none of the above.
Which of the following statements is correct?
a. It is impossible for a country to fix its exchange rate and have an independent monetary policy at the same time. b. Flexible exchange rates are always superior to fixed exchange rates. c. Whether flexible exchange rates or fixed exchange rates are better for a nation depends on the characteristics of the economy. d. The level at which the exchange rate is fixed does not have any implications on the amount of interaction needed by the central bank to sustain the regime of fixed exchange rate.
Assume a simplified banking system in which all banks are subject to a uniform reserve requirement of 20 percent and checkable deposits are the only form of money. A bank that received a new checkable deposit of $10,000 would be able to extend new loans up to a maximum of:
a. $2,000. b. $8,000. c. $10,000. d. $9,000.