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 By only increasing taxes
C Increasing government spending and/or decreasing taxes
D Lowering taxes and raising government spending
Question #2
A Contractionary fiscal policy
B Expansionary monetary policy
C Expansionary fiscal policy
D Contractionary monetary policy
Question #3
A The government is spending more money than it receives in taxes for a given year.
B The government is receiving more money in taxes than it spends in a year.
C The rate of inflation is declining.
D The unemployment rate is declining.
Question #4
A State Legislatures
B The President and Congress
C Congress
D The President
Question #5
A Private consumption
B Excessive importation of goods and services
C Government borrowing and spending
D Foreign firms dominating the domestic economy
Question #6
A Increasing investment and increasing government spending
B Increasing consumption and decreasing taxes
C Decreasing in government spending and decreasing taxes
D Decreasing in government spending and increasing in taxes
Question #7
A Increase taxes, decrease transfer payments, and/or decrease government spending.
B Decrease taxes, decrease government spending, and/or decrease transfer payments
C Decrease taxes, increase transfer payments, and/or decrease government spending
D Increase taxes, increase spending, and/or increase transfer payments
Question #8
A Legislative lag; deducted from the higher-income groups to pay the lower income groups
B Contractionary fiscal policy; current older workers from funds deducted from younger workers
C Automatic stabilizers; current retirees using funds from current contributions
D Progressive tax; to current retirees from funds from their past contributions
Question #9
A 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.
B One argument against a required balanced federal budget is that this mandate cannot be added to the Constitution, and therefore, could not be enforced.
C 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.
D One argument against a required balanced federal budget is that the government does not have macroeconomic responsibilities
Question #10
A Stimulus Package
B Food Stamps
C Unemployment Insurance
D Personal Income Tax
Question #11
A Neither monetary or fiscal policy
B Monetary but not fiscal policy
C Both monetary and 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 decreases
C There is no change
D It doubles
Question #14
A $200 million
B $400 million
C $200 billion
D $400 billion
Question #15
A The FOMC is smaller in size than the Federal Reserve Board
B There are 14 members of the Federal Reserve Board
C There are 12 regional Federal Reserve Banks
D The head of the Treasury also chairs the Federal Reserve Board
Question #16
A The president
B Member banks
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 Federal funds rate
B Discount rate
C Open market operations
D Reserve requirements
Question #19
A Lower interest rates and lower GDP.
B Higher interest rates and lower GDP
C Lower interest rates and higher GDP
D Higher interest rates and higher GDP
Question #20
A Purchasing government securities
B Lending to nonbanks
C Increasing the discount rate
D Selling government securities