ECO/372T Principles Of Macroeconomics The Latest Version A+ Study Guide **********************************************
ECO 372T Entire Course Link http://www.onlinehelp123.com/eco-372 ********************************************** ECO 372T Wk 4 Apply: Quiz he economy is in a recession. The government enacts a policy to increase spending by $6 billion. The MPS is 0.25. What would be the full increase in real GDP from the change in government spending, assuming that the aggregate supply curve is horizontal across the range of GDP being considered? Multiple Choice • $24 billion • $6 billion • $144 billion • $12 billion
Money Market Mutual Fund Balances Held by Businesses $100 Money Market Mutual Fund Balances Held by Individuals 250 Currency in Banks 10 Currency in Circulation 60 Savings Deposits, Including Money Market Deposit Accounts 80 Large-denominated ($100,000 or more) Time Deposits 180 Small-denominated ($100,000 or less) Time Deposits 110 Checkable Deposits70 Refer to the table. The value of the near monies that are part of M2 is Multiple Choice • $440. • $250. • $80. • $450.
Money Market Mutual Fund Balances Held by Businesses $100 Money Market Mutual Fund Balances Held by Individuals 220 Currency in Banks 10 Currency in Circulation 70 Savings Deposits, Including Money Market Deposit Accounts 50 Large-denominated ($100,000 or more) Time Deposits 180 Small-denominated ($100,000 or less) Time Deposits 80 Checkable Deposits80 Refer to the table. Money supply M2 for this economy is Multiple Choice • $500. • $70. • $80. • $510.
If the MPC in an economy is 0.75, government could shift the aggregate demand curve leftward by $90 billion by Multiple Choice • increasing taxes by $30 billion. • reducing government expenditures by $14 billion. • increasing taxes by $22.5 billion. • reducing government expenditures by $90 billion.
If the MPC in an economy is 0.75, government could shift the aggregate demand curve rightward by $36 billion by Multiple Choice • decreasing taxes by $12 billion. • increasing government spending by $12 billion. • increasing government spending by $27 billion. • decreasing taxes by $36 billion.
Suppose the federal government had budget deficits of $40 billion in year 1 and $50 billion in year 2 but had budget surpluses of $10 billion in year 3 and $50 billion in year 4. Also assume that it used its budget surpluses to pay down the public debt. At the end of these four years, the federal government's public debt would have Multiple Choice • increased by $30 billion.
• • •
increased by $90 billion. decreased by $60 billion. decreased by $30 billion.
If the MPS in an economy is 0.1, government could shift the aggregate demand curve rightward by $50 billion by Multiple Choice • increasing government spending by $5 billion. • increasing government spending by $50 billion. • decreasing taxes by $5 billion. • increasing taxes by $5 billion.
If the MPS in an economy is 0.25, government could shift the aggregate demand curve leftward by $48 billion by Multiple Choice • reducing government expenditures by $12 billion. • reducing government expenditures by $192 billion. • increasing taxes by $48 billion. • increasing taxes by $384 billion.
Item Billions of Dollars Checkable Deposits$597 Small Time Deposits 818 Currency 639 Money-Market Mutual Funds Held by Businesses1,045 Savings Deposits, Including Money-Market Deposit Accounts Money-Market Mutual Funds Held by Individuals 979
2,866
Refer to the accompanying table. The size of the M2 money supply is Multiple Choice • $5,899 billion. • $2,054 billion. • $2,696 billion. • $6,792 billion.
Security Amount (in Billions) Treasury Bills $300 Corporate Bonds 140 Treasury Notes 80
Corporate Stock 200 US Savings Bonds 60 Treasury Bonds 100 The public debt for the economy is Multiple Choice • $540 billion. • $680 billion. • $480 billion. • $740 billion.