QUIZZEZZ 4 AND 5 Essay paper

QUIZZEZZ 4 AND 5

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QUIZ 4

 

Question 1 (10 points)

 

In addition to lowering the discount rate to increase the money supply, the Fed could also

Question 1 options:QUIZZEZZ 4 AND 5

	purchase bonds on the open market and raise reserve requirements.
	sell bonds on the open market and raise reserve requirements.
	purchase bonds on the open market and lower reserve requirements
	sell bonds on the open market and lower reserve requirements.

Question 2 (10 points)

 

At lower interest rates the

Question 2 options:

	money supply is indeterminate.
	money supply is lower.
	quantity of money demanded is higher.
	quantity of money demanded is lower.

Question 3 (10 points)

 

Selling government bonds through open market operations allows the Federal Reserve to

Question 3 options:QUIZZEZZ 4 AND 5

	decrease money in the treasury.
	decrease the money supply in the private sector
	receive discounts on future sales.
	receive a high rate of interest on the bonds

Question 4 (10 points)

 

How can the Federal Reserve actually increase the money supply?

Question 4 options:

	by delaying transfer of money among banks
	by raising the discount rate
	by printing more money
	by purchasing more government bonds in the open market

Question 5 (10 points)

 

What would be a way for the Federal Reserve to stimulate a sluggish economy?

Question 5 options:

	print more money
	buy government bonds on the open market
	sell more government bonds
	encourage the stock market

Question 6 (10 points)

 

What would be a way for the Federal Reserve to slow down the economy when it is growing too quickly or is inflationary?

Question 6 options:

	print more money
	buy back government bonds on the open market
	sell more government bonds
	encourage the stock market

Question 7 (10 points)

 

An open market purchase by the FedQUIZZEZZ 4 AND 5

Question 7 options:

	) increases the total amount of reserves in the banking system.
	decreases the total amount of reserves in the banking system.
	does not change the total amount of reserves in the banking system
	causes the reserve requirement to fall.

Question 8 (10 points)

 

Saved

An increase in the discount rate

Question 8 options:

	reduces the cost of reserves borrowed from the Fed.
	signals the Fed’s desire to increase the money supply.
	signals the Fed’s desire to lend increased reserves to banks.
	increases the cost of reserves borrowed from the Fed.

Question 9 (10 points)

 

If the Federal Reserve conducts an open market purchase, the

Question 9 options:

	interest rate will not change.
	interest rate will increase.
	interest rate will decrease
	money supply is decreased

Question 10 (10 points)

 

Which of the following is associated with the crowding-out effect

Question 10 options:

	Government borrowing that competes with private-sector borrowing
	A reduction in private investment spending due to an increase in government borrowing
	A possible result of expansionary fiscal policy
	All of the above

 

 

 

QUIZ 5

 

Question 1 (10 pointsQUIZZEZZ 4 AND 5

 

An event that allows the economy to operate more efficiently by producing more outputs without using any more inputs is referred to as

Question 1 options:

	absolute progress
	efficiency progress
	capital investment.
	technological progress.

Question 2 (10 points)

 

All of the following can cause technological progress EXCEPT

Question 2 options:

	research and development
	education.
	free trade.
	population decreases.

Question 3 (10 points)

 

It is possible for an economy to become more productive and per-capita output to increase if

Question 3 options:

	new ideas are generated.
	inventions are developed.
	technology is improved
	all of the above

Question 4 (10 points)

 

Knowledge and skills are part of ________ in an economy

Question 4 options:

	educational functions
	human capital
	market growth
	innovation

Question 5 (10 points)

 

Economic growth is severely impeded in economies

Question 5 options:

	with a lack of clear property rights.
	with a strong central government.
	with high rates of convergence
	which encourage induced innovation

Question 6 (10 points)

 

Monopoly profits lead to technological process by

Question 6 options:

	carefully investing deadweight loss.
	encouraging the development of innovations by firms attempting to break a monopoly.
	firms lobbying Congress for protection of their monopolies.
	increasing the amount of human capital in the economy.

Question 7 (10 points)

 

What is the only thing that makes an economy grow in the long run?

Question 7 options:

	Increases in labor productivity growth
	Increases in the price level
	Increases in the interest rate
	Increases in the labor force

Question 8 (10 points)QUIZZEZZ 4 AND 5

 

) Economists suggest that trade’s main advantage is allowing the world to achieve

Question 8 options:

	economic growth for all countries
	greater equality between countries
	more self-sufficiency
	specialization and the resulting economies of scale

Question 9 (10 points)

 

Among the institutional structures that promote economic growth, most economists would include

Question 9 options:

	religious freedom, and restricted trade
	wide-spread education, free trade, and strong property rights
	religious freedom, patents and copyrights, and government economic planning
	strong industrial regulation, government economic planning, and restricted trade

Question 10 (10 points)

 

If an economy’s production possibilities curve has shifted out, we can unambiguously conclude that:

Question 10 options:

	the supply of natural resources increased
	the supply of labor increased
	potential GDP increased
	technology improved