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Questions and Answers
Unpredictable changes in the value of money, which brings about gains and losses, are a consequence of unpredictable changes in
Unpredictable changes in the value of money, which brings about gains and losses, are a consequence of unpredictable changes in
- real GDP
- unemployment rate
- inflation (correct)
- productivity
What does the federal funds rate refer to?
What does the federal funds rate refer to?
- The interest rate on the 3-month Treasury bill
- The interest rate that banks charge each other on overnight loans (correct)
- The interest rate on the 30-year treasury bond
- The interest rate that the Fed charges commercial banks on loans
If the FOMC forecasts higher inflation above its target, what will it do to moderate the inflation?
If the FOMC forecasts higher inflation above its target, what will it do to moderate the inflation?
- Lower the federal funds target very quickly in a few large steps
- Lower the federal funds target in small steps over several months
- Raise the federal funds target very quickly in a few large steps
- Raise the federal funds target in small steps over several months (correct)
What is a limitation of using fiscal policy?
What is a limitation of using fiscal policy?
Which of the following is an example of a person who is not in the labor force?
Which of the following is an example of a person who is not in the labor force?
What type of gap is illustrated in the figure above?
What type of gap is illustrated in the figure above?
What is an example of an investment in capital goods?
What is an example of an investment in capital goods?
What is the discount rate?
What is the discount rate?
What has been the average annual growth rate of real GDP per person in the United States over the past 120 years?
What has been the average annual growth rate of real GDP per person in the United States over the past 120 years?
What is a discretionary fiscal policy?
What is a discretionary fiscal policy?
What does the Laffer curve show?
What does the Laffer curve show?
What type of unemployment is associated with the changing of jobs in a changing economy?
What type of unemployment is associated with the changing of jobs in a changing economy?
What is the term for the highest point of a business cycle?
What is the term for the highest point of a business cycle?
How many regional Federal Reserve Banks and members of the Board of Governors are there in the Federal Reserve?
How many regional Federal Reserve Banks and members of the Board of Governors are there in the Federal Reserve?
What is the correct formula to calculate the unemployment rate if 25 people are not in the labor force out of a working age population of 100?
What is the correct formula to calculate the unemployment rate if 25 people are not in the labor force out of a working age population of 100?
Which of the following is the central bank of the United States?
Which of the following is the central bank of the United States?
What happens when transfer payments increase and tax revenues decrease?
What happens when transfer payments increase and tax revenues decrease?
What is the primary function of the Federal Open Market Committee (FOMC)?
What is the primary function of the Federal Open Market Committee (FOMC)?
What does G represent in the equation GDP = C + I + G + X - M?
What does G represent in the equation GDP = C + I + G + X - M?
What is the primary function of a money market mutual fund?
What is the primary function of a money market mutual fund?
What is the formula to calculate the percentage change in real GDP?
What is the formula to calculate the percentage change in real GDP?
What is the unemployment rate in the given scenario?
What is the unemployment rate in the given scenario?
What is included in government expenditures in the expenditure approach to GDP?
What is included in government expenditures in the expenditure approach to GDP?
What is the primary reason for focusing on long-term growth?
What is the primary reason for focusing on long-term growth?
When the Federal Reserve is concerned about recession, what monetary policy will it use to stimulate aggregate demand?
When the Federal Reserve is concerned about recession, what monetary policy will it use to stimulate aggregate demand?
What type of unemployment is Bill experiencing when he loses his job as a loan officer and is searching for a new job?
What type of unemployment is Bill experiencing when he loses his job as a loan officer and is searching for a new job?
What does the aggregate production function describe?
What does the aggregate production function describe?
What is the primary goal of quantitative easing?
What is the primary goal of quantitative easing?
Which of the following expenditures is for a final good?
Which of the following expenditures is for a final good?
What is the likely outcome of higher standards of living?
What is the likely outcome of higher standards of living?
