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