In a fixed exchange rate system, an increase in the exchange rate at which a currency is pegged is called a(n):
A. appreciation.
B. devaluation.
C. revaluation.
D. depreciation.
Answer: C
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The stock of money people hold to pay everyday predictable expenses is the:
a. transactions demand for holding money. b. precautionary demand for holding money. c. speculative demand for holding money. d. store of value demand for holding money.
Which of the following would increase GDP by the greatest amount?
A. A $20 billion reduction in taxes B. $20 billion increases in both government spending and taxes C. $20 billion decreases in both government spending and taxes D. A $20 billion increase in government spending
The demand curve slopes
A. upward to the right. B. upward to the left. C. downward to the right. D. downward to the left.
The important effects of ZIRP, QE, and Operation Twist include the following, except:
A. The federal government was able to fund huge budget deficits at lower than normal interest rates B. The Fed became the federal government's primary lender, financing a huge portion of the budget deficit C. Government spending in effect became largely funded by "newly printed" money D. The Fed's monetary policy somewhat offset the effects of the federal government's fiscal policy