econ homework

·  None of the above

Question 3: A decrease in aggregate supply is expected to lead to

·  Inflation and Economic Growth

·  Inflation and Recession

·  Deflation and fall in unemployment

·  None of the above

Question 4: An increase in government expenditures is expected to lead to

·  Inflation and Economic Growth

·  Inflation and Recession

·  Deflation and fall in unemployment

·  None of the above

Question 5: Cutting income taxes is expected to lead to

·  Inflation and Economic Growth

·  Inflation and Recession

·  Deflation and fall in unemployment

·  None of the above

Question 6: Reducing government expenditures is expected to lead to

·  Inflation and Economic Growth

·  Deflation and Recession

·  Deflation and fall in unemployment

·  None of the above

Question 7: Bond purchases by the Federal Reserve is expected to lead to

·  Rise in interest rates

·  Fall in interest rates

·  Increase in unemployment

·  None of the above

Question 8: Bond sales by the Federal Reserve is expected to lead to

·  Rise in interest rates

·  Fall in interest rates

·  Fall in unemployment

·  None of the above

Question 9: Bond sales by the Federal Reserve is an example of

·  Expansionary Monetary Policy

·  Expansionary Fiscal Policy

·  Contractionary Monetary Policy

·  None of the above

Question 10: Bond purchase by the Federal Reserve is an example of

·  Expansionary Monetary Policy

·  Expansionary Fiscal Policy

·  Contractionary Monetary Policy

·  None of the above

Question 11: Expansionary monetary policy is expected to lead to

·  Increase in the rate of interest

·  Decrease in the rate of interest

·  Appreciating domestic currency

·  None of the above

Question 12: Contractionary monetary policy is expected to lead to

·  Increase in the rate of interest

·  Decrease in the rate of interest

·  Depreciating domestic currency

·  None of the above

Question 13: Unemployment is expected to decrease in response to

·  Decrease in government spending

·  Bond sales by the Federal Reserve

·  Bond purchase by the Federal Reserve

·  None of the above

Question 14: Unemployment is expected to decrease in response to

·  Decrease in government spending

·  Bond sales by the Federal Reserve

·  Interest rate cut by the Federal Reserve

·  None of the above

Question 15: Investments in human capital is expected to lead to

·  Long term recession

·  Depression

·  Long term economic growth

·  None of the above