test 4

The table contains information about Pfizer's stock. How much is Pfizer, as a company, worth? $35.86. $36.22. $36 billion. $200.33 billion.

$200.33 billion.

Total consumption is $1,400 when income is $1,600, and total consumption increases to $1,900 when income is at $2,400. What is the marginal propensity to consume? 0.83 1.6 0.37 0.63

0.63

The table shows the salary of a worker in Germany. The. level of saving in 2016 is: 23,100 euros. 17,100 euros. 18,000 euros. 18,900 euros.

17,100 euros.

How is monetary policy different fro fiscal policy? Monetary policy adjusts interest rates, whereas fiscal policy adjusts government spending and taxes. Monetary policy focuses on correcting inflation, whereas fiscal policy focuses on unemployment. Monetary policy is determined by the president, whereas fiscal policy is determined by the chair of the Federal Reserve. There is no difference between the two policies.

Monetary policy adjusts interest rates, whereas fiscal policy adjusts government spending and taxes.

An excise tax is a tax on: luxury goods and services. imports. purchases that is typically a percentage of the purchase price of goods and services. a specific product.

a specific product.

Deposit insurance is: a guarantee that you will get your money back, even if the bank collapses. a method by which banks rank borrowers based on their credit scores. personal insurance you can buy to ensure that you can pay back any loans you take from a bank. insurance that is sold by banks.

guarantee that you will get your money back, even if the bank collapses.

Discretionary spending is spending that: supports programs that do not get determined annually but instead are set in law. is appropriated by Congress annually. includes all federal government spending. includes all state and local government spending.

is appropriated by Congress annually.

the federal funds rate is the: interest rate the public pays on loans from banks. nominal interest rate that banks pay on overnight interbank loans. nominal interest rate minus the inflation rate. interest rate on loans from the Federal Reserve's discount window.

nominal interest rate that banks pay on overnight interbank loans.

Forward guidance occurs when the federal reserve: provides information about the future course of monetary policy in order to influence expectations about future interest rates. follows the same future course of monetary policy that it has been following in the past. carries out open market operations to influence future interest rates. provides information about current monetary policy in order to influence expectations about future interest rates.

provides information about the future course of monetary policy in order to influence expectations about future interest rates.

Tax expenditures are: purchases made from disposable income. special deductions, credits, or exemptions that lower your tax obligations. consumer expenditures on taxes. payroll taxes.

special deductions, credits, or exemptions that lower your tax obligations.

mandatory spending is sending that: supports programs that do not get determined annually but instead are set in law. is appropriated by Congress annually. includes all federal government spending. includes all state and local government spending.

supports programs that do not get determined annually but instead are set in law.

The marginal propensity to consume is: increasing if the marginal propensity to save is increasing. the proportion of total income that the average family saves. the change in consumption divided by the change in income. the change in consumption minus the change in income.

the change in consumption divided by the change in income.

What is a reserve requirement? the minimum amount of reserves that each bank must hold a maximum loan amount on the overnight loan market the ceiling on the federal funds rate the amount of money that the Federal Reserve spends on buying bonds

the minimum amount of reserves that each bank must hold

Fiscal policy works best when it is: general, nonspecific, and long-lasting. timely, targeted, and temporary. discretionary. not countercyclical.

timely, targeted, and temporary.

What is the federal reserve's mandate? to print as many dollars as possible without causing inflation to encourage inflation and raise unemployment to ensure maximum employment while maintaining stable prices to ensure that interest rates remain low all the time

to ensure maximum employment while maintaining stable prices