Principles of Economics
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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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