Navigation » List of Schools » Glendale Community College » Economics » Econ 102 – Principles of Macroeconomics » Winter 2023 » Week 5 Reading Quiz Chs. 15 and 17
Below are the questions for the exam with the choices of answers:
Question #1
A Lowering taxes and raising government spending
B Increasing government spending and/or decreasing taxes
C Decreasing government spending and/or increasing taxes
D By only increasing taxes
Question #2
A Expansionary monetary policy
B Contractionary fiscal policy
C Contractionary monetary policy
D Expansionary fiscal policy
Question #3
A The government is spending more money than it receives in taxes for a given year.
B The unemployment rate is declining.
C The rate of inflation is declining.
D The government is receiving more money in taxes than it spends in a year.
Question #4
A The President and Congress
B Congress
C The President
D State Legislatures
Question #5
A Private consumption
B Foreign firms dominating the domestic economy
C Government borrowing and spending
D Excessive importation of goods and services
Question #6
A Decreasing in government spending and increasing in taxes
B Increasing investment and increasing government spending
C Decreasing in government spending and decreasing taxes
D Increasing consumption and decreasing taxes
Question #7
A Decrease taxes, increase transfer payments, and/or decrease government spending
B Decrease taxes, decrease government spending, and/or decrease transfer payments
C Increase taxes, increase spending, and/or increase transfer payments
D Increase taxes, decrease transfer payments, and/or decrease government spending.
Question #8
A Automatic stabilizers; current retirees using funds from current contributions
B Contractionary fiscal policy; current older workers from funds deducted from younger workers
C Legislative lag; deducted from the higher-income groups to pay the lower income groups
D Progressive tax; to current retirees from funds from their past contributions
Question #9
A One argument in support of a required balanced federal budget maintains that having a balanced budget each year would make the impacts of economic recessions less severe.
B One argument against a required balanced federal budget is that sometimes it is necessary or beneficial to run large budget deficits in the short-run.
C One argument against a required balanced federal budget is that this mandate cannot be added to the Constitution, and therefore, could not be enforced.
D One argument against a required balanced federal budget is that the government does not have macroeconomic responsibilities
Question #10
A Unemployment Insurance
B Personal Income Tax
C Food Stamps
D Stimulus Package
Question #11
A Both monetary and fiscal policy
B Monetary but not fiscal policy
C Neither monetary or fiscal policy
D Fiscal but not monetary policy
Question #12
A Increase aggregate supply
B Decrease aggregate demand
C Decrease aggregate supply
D Increase aggregate demand
Question #13
A It increases
B It doubles
C There is no change
D It decreases
Question #14
A $400 million
B $200 billion
C $200 million
D $400 billion
Question #15
A The head of the Treasury also chairs the Federal Reserve Board
B There are 14 members of the Federal Reserve Board
C There are 12 regional Federal Reserve Banks
D The FOMC is smaller in size than the Federal Reserve Board
Question #16
A Member banks
B The president
C Board of Governors of the Fed
D U. S. Congress
Question #17
A Sell off government bonds
B Issue more loans
C Raise interest rates
Question #18
A Discount rate
B Reserve requirements
C Open market operations
D Federal funds rate
Question #19
A Higher interest rates and lower GDP
B Lower interest rates and higher GDP
C Higher interest rates and higher GDP
D Lower interest rates and lower GDP.
Question #20
A Lending to nonbanks
B Increasing the discount rate
C Selling government securities
D Purchasing government securities