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M6_problem_sets_1.xlsxModule 6 Problem Sets
| Principles of Economics | |||||
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| Date: |
Question #1
| The means that fiscal policy uses to attain its goals are the manipulation of ____________________ and ____________________________. |
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Question #2
| Welfare spending, unemployment compensation, and direct taxes are all examples of ____________________________. |
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Question #3
| When the MPC is 0.8, how much is the multiplier? |
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Question #4
| If GDP is 3,400, the multiplier is 5, and I rises by 15, what is the new level of GDP? |
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Question #5
| If GDP is 3,900, the multiplier is 8, and G falls by 10, what is the new level of GDP? |
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Question #6
| The world's first bankers were ___________________________. |
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Question #7
| What are the three functions of money? |
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Question #8
| The M1 money supply consists of _______________________, _______________________, __________________________, and _____________________________. |
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Question #9
| Banks are very heavily regulated. The main reason for this is that _______________________________. |
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Question #10
| What is the most successful bartering system in the world? |
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Question #11
| Our paper currency is issued by __________________________________. |
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Question #12
| Our currency is backed by _________________________________________. |
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Question #13
| If the Fed wants to increase the money supply, it will follow these steps: |
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Question #14
| If the reserve requirement were 15-percent, how much would the deposit multiplier be? |
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Question #15
| Control of the Federal Reserve is held by _______________________________. |
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