Econ 202 final
The amount that a commercial bank can lend is determined by its:
Excess reserves
The money supply is back by?
Government ability to control the money supply
Depreciation of the dollar will
Increase import; decrease export
The total demand for money curve will shift to the right as the result of
Increase in nominal GDP
If the United State have full employment and dollar dramatically depreciates in value. We can expect other thing being equal
Inflation to occur
The purchasing power of money and the price level vary:
Inversely
A major advantage of a building automatic stabilizers is that they:
No legislative action
Which of the following is a difference between "quantitative easing" and ordinary open-market operations?
Open market/ lower interest rate; Quantitative easing/ increase bank reserves.
Excise taxes on imported goods that help shield domestic producers of the good are called:
Protective tariffs
There must always be a balance of the nation
Total international payment
Before the financial crisis, if the Fed wanted to lower the federal funds rate, it would:
buy government securities in the open market.
The current account section of the nation's balance of payments indicates:
record/ indicates the imports and exports of goods and services.
The federal budget deficit is found by?
Subtracting gov tax revenue by gov expense
Other things equal, an improvement in productivity will:
Supply curve will shift to the right
When the Fed sells bonds the expected result is that
Supply- fall; Rate-rise; contraction
Tariffs
Tax on a good when it crosses a boundary Gov tax of import and export
During periods of rapid inflation, money may cease to work as a medium of exchange:
because people and businesses will not want to accept it in transactions.
Studies show that..
Cost of trade barriers don't exceed their benefit creating more...
Commercial bank create money when they
Create checkable deposit
Which one of the following, other things equal, will directly alter the United States balance of trade?
Decrease in US good export
Which of the following did not contribute directly to the Great Recession?
Dot.com
In the U.S. balance of payments- foreign purchases of assets in the United States are
foreign currency inflow.
Most modern banking systems are based on?
fractional reserves
Research studies indicate that
Producer gain more from tariffs than customer lose
The cyclically adjusted budget refer to?
Size of budget in the current year
The prime interest rate
the benchmark interest rate that banks use as a reference point
