Rivers ECONOMICS 1022B-001
里弗斯经济学代写 MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1.Money’sfunction as a unit of account can best be described as
A.a commodity that can be exchanged for another commodity.
B.anagreed measure for stating the prices of goods and
C.a generally accepted medium of exchange.
D.an entry in an accounting ledger.
E.a method of recording transactions.
2.The official definitions of money can include all of the followingexcept
A.personal chequable deposits.
B.cheques.
C.non-chequable deposits.
D.deposits at a depository institution other than a chartered bank.
E.currency outside banks.
3.Whichof the following is a store of value? 里弗斯经济学代写
A.Adebit card.
B.Acredit card.
C.Afixed term deposit.
D.A cheque.
E.All of the above.
4.If Wolfgang transfers $1,000 out of his non-chequable deposit account and places it in hischequable deposit account,
A.M1and M2 fall.
B.M1rises and M2 remains the same.
C.M1rises and M2 falls.
D.M1falls and M2 remains the same.
E.M1falls and M2 rises.
5.Whenever actual reserves exceed desired reserves, the bank 里弗斯经济学代写
A.can make new loans.
B.willraise the interest rate on its loans.
C.will go out of business.
D.needs to call in loans.
E.will borrow funds from another bank.
6.Suppose that a country has $100 billion in bank reserves, $150 billion in currency held by thepublic, and $1000 billion in bank deposits. The currency drain ratio is
A)14%. B) 15%. C) 25%. D)67%. E) 10%.
7.The quantity of money that the banking system can create is limited by
A.decisions of households.
B.decisions of banks.
C.decisions of the Bank of Canada.
D.B and C. 里弗斯经济学代写
E.all of the above.
8.The amount of real money people want to hold will decrease if either the rate of interest increasesor
A.the price level decreases.
B.real GDP increases.
C.real GDP decreases.
D.the price of bonds increase.
E.the price level increases.
Use the figure below to answer the following question. 里弗斯经济学代写
Figure 1
9.Refer to Figure 1. Which one of the following best describes the response to an increase in realGDP?
A.Movement from E to A.
B.Movementfrom B to A.
C.Movementfrom A to C.
D.Movementfrom A to E.
E.Movementfrom A to F.
10.Real GDP is $2,000 billion, the price level is 120, and the velocity of circulation is 5.Nominal GDP is 里弗斯经济学代写
A.$2,400 billion.
B.$24 billion.
C.$2,000 billion.
D.$166.67 billion.
E.$600 billion.
11.According to the quantity theory of money, an increase in the quantity of money will increase theprice level
A.and decrease real GDP and increase the velocity of circulation.
B.and increase real GDP but decrease the velocity of circulation.
C.and increase real GDP and the velocity of circulation.
D.but have no effect on real GDP or the velocity of circulation.
E.and will have no change in real GDP and a decrease in the velocity of circulation.
12.Suppose that the desired reserve ratio is 0.25 and the currency drain ratio is 0.25.The money multiplier is 里弗斯经济学代写
A)50. B) 2.08. C) 1.40. D)1.71. E) 2.40.
13.Suppose that the banking system has excess reserves of $20 million, the desired reserve ratio is 10percent and the currency drain ratio is 30 percent. By how much will the quantity of money increase?
A.$55 million.
B.$6.7 million.
C.$65 million.
D.$26 million.
E.$28 million.
14.The exchange rate is the 里弗斯经济学代写
A.percentage change in the volume of currency exchanges.
B.priceat which one currency exchanges for another currency.
C.averagerate at which foreign currencies are exchanged.
D.volume of currency exchanged between importers and exporters.
E.rate of currency appreciation or depreciation.
15.Suppose the dollar-yen foreign exchange rate changes from 140 yen per dollar to 130 yen per Then the yen has
A.depreciated against the dollar, and the dollar has depreciated against the yen.
B.neither appreciated nor depreciated, but the dollar has depreciated against the yen.
C.appreciated against the dollar, and the dollar has appreciated against the yen.
D.appreciated against the dollar, and the dollar has depreciated against the yen.
E.depreciated against the dollar, and the dollar has appreciated against the yen.
16.Supposethat the following situation exists in the foreign exchange market: 1 Canadian dollar buys $0.88 U.S, and 1 Canadian dollar buys 7.2 Chinese yuan. How many yuan will $1 U.S.buy? 里弗斯经济学代写
A.1.0 yuan B) 8.2 yuan C) 7.2 yuan D)0.14 yuan E) 0.12 yuan
17.Whichone of the following would result in the dollar appreciating against the Japanese yen?
A.a rise in the Canadian interest rate
B.a fall in the Canadian interest rate
C.afall in the Japanese interest rate
D.both Aand C
E.a decrease in the expected future Canadian exchange rate
18.Suppose the interest rate in Canada rises and the interest rate in Japan remains the same. Interestrate parity implies that given equal risk
A.theinflation rate is higher in Japan. 里弗斯经济学代写
B.Japanesefinancial investments are less profitable.
C.Canadian financial investments are less profitable.
D.the yen is expected to appreciate against the dollar.
E.the yen is expected to depreciate against the dollar.
19.Suppose you think that the Canadian exchange rate will depreciate over the next month.What should you do now in anticipation of profit?
A.Buy Canadian dollars.
B.Buy foreign currency.
C.Sell Canadian dollars.
D.Sell foreign currency.
E.Doboth B and C.
20.Which of the following factors move the demand curve for Canadian dollars and the supply curveof Canadian dollars in opposite directions?
A.The interest rate differential increases or decreases. 里弗斯经济学代写
B.Canadian imports increase or decrease.
C.The world demand for Canadian exports increases or decreases.
D.The expected future exchange rate rises or falls.
E.Both Aand D above.
21.Suppose that the following situation exists in the foreign exchange 1 Canadian dollar buys 0.92 Swiss francs. If the price of a block of Swiss chocolate is 13 Swiss francs, what is the price in Canadian dollars if purchase power parity exists?
A)$14.13 B) $11.96 C) $13.00 D)$13.92 E) $12.08
Use the information below to answer the following question.
Fact 1
You are given the following information about the country of Ecoland, whose currency is the turkey, and whose official settlements balance is zero.
22.Referto Fact What is the amount of saving by the people of Ecoland?
A.10 billion turkies
B.8 billion turkies
C.20 billion turkies
D.12 billion turkies
E.6 billion turkies
23.Suppose that a country’s government expenditures are $500 billion, net taxes are $400 billion,saving is $200 billion, and investment is $250 billion. The country has a government budget
A.surplusand a private sector deficit.
B.surplusand a private sector surplus.
C.deficitand a private sector surplus.
D.surplusand a private sector balance.
E.deficitand a private sector deficit.
24.The current account records 里弗斯经济学代写
A.current government expenditure.
B.net exports, net interest income and net transfers.
C.current investment.
D.net value of Canadian investments and foreign investments.
E.current consumption expenditure.
25.Suppose the Bank of Canada follows a fixed-exchange rate of 0.50 U.K. pounds per Canadian If the demand for dollars temporarily decreases, to maintain the target exchange rate, the Bank can
A.buy dollars.
Bincrease Canadian exports.
C.violate purchasing power parity.
D.sell dollars.
E.increase Canadian imports.
26.Whichone of the following newspaper quotations describes a shift of only the SAS curve?
A.”The increase in consumer spending is expected to lead to inflation, without any increase inreal ”
B.”Recent higher wage settlements are expected to cause higher inflation this ”
C.”Growth has been unusually high the last few years due to more women entering the work”
D.”The decrease in consumer spending may lead to a ”
E.”The recent tornadoes destroyed many factories in Calgary and Edmonton.”
27.Avertical long-run aggregate supply curve indicates that 里弗斯经济学代写
A.anincrease in the price level will permit the economy to achieve a higher level of output.
B.thelong-run aggregate supply curve never shifts.
C.anincrease in the price level will increase technological change and economic growth.
D.output rates greater than the long-run output rate are unattainable.
E.anincrease in the price level will not expand an economy’s output in the long run.
28.The short-run aggregate supply curve is the relationship between the quantity of real GDP suppliedand
A.real income.
B.the inflation rate.
C.the price level.
D.the real interest rate.
E.thequantity of real GDP demanded.
29.Everything else remaining the same, the short-run aggregate supply curve shifts rightward if
A.the quantity of capital decreases.
B.themoney wage rate increases.
C.the full-employment quantity of labour increases.
D.factor prices increase. 里弗斯经济学代写
E.aggregate demand increases.
30.Long-runaggregate supply will increase for all of the following reasons except
A.an increase in the quantity of capital.
B.the introduction of new technology.
C.an increase in the full-employment quantity of labour.
D.an increase in human capital.
E.afall in the money wage rate.
31.Whichone of the following factors will not shift the aggregate demand curve?
A.Anincrease in the interest rate.
B.Anincrease in expected future profits.
C.Anincrease in the expected inflation rate.
D.Anincrease in the quantity of money.
E.Anincrease in the price level. 里弗斯经济学代写
32.Everythingelse remaining the same, which one of the following increases aggregate demand?
A.Adecrease in the quantity of money.
B.Anincrease in taxes.
C.Anincrease in transfer payments.
D.Adecrease in government spending.
E.Adecrease in the price level.
33.Whichone of the following is a reason for the negative slope of the aggregate demand curve?
A.the nominal balance effect
B.the expected inflation effect
C.the substitution effects
D.the income effect
E.the real wage effect
34.When the actual unemployment rate is equal to the natural unemployment rate, then the
A.short-runaggregate supply curve is vertical.
B.long-runaggregate supply curve is upward sloping.
C.th emoney wage rate will rise.
D.economyis operating at potential GDP.
E.inflation rate must be zero.
Use the figure below to answer the following questions. 里弗斯经济学代写
Figure 2
35.Referto Figure Short-run macroeconomic equilibrium real GDP in Econoworld is
A.$520 billion.
B.$400 billion.
C.$480 billion.
D.$360 billion.
E.$440 billion.
36.Refer to Figure Consider statements (1) and (2) and select the correct answer.
(1) The economy of Econoworld is experiencing a below full-employment equilibrium.
(2) The actual unemployment rate equals the natural unemployment rate.
A.(2) is true; (1) is false.
B.(1) and (2) are false.
C.(1) and (2) are true.
D.(1) is true; (2) is false.
E.(1) is true; (2) is true if the natural unemployment rate is too high.
Use the figure below to answer the following question.
Figure 3
37.Refer to Figure As the economy of Mythlo automatically adjusts to long-run equilibrium, the
A.SAS curve shifts rightward.
B.SAS curve shifts leftward.
C.AD curve shifts rightward.
D.LAS curve shifts rightward.
E.AD curve shifts leftward.
38.We observe a decrease in the price level and a decrease in real GDP. Which of the following is apossible explanation?
A.An increase in expected future profits. 里弗斯经济学代写
B.Adecrease in the quantity of money.
C.An increase in factor prices.
D.An increase in the quantity of capital.
E.An increase in expected future income.
Use the table below to answer the following question.
Table 1
39.Refer to Table 1. Consider the economy represented in the table. There is
A.an inflationary gap equal to $100 billion.
B.an inflationary gap equal to $50 billion.
C.a recessionary gap equal to $50 billion.
D.neither an inflationary nor a recessionary gap because the economy is at full employment.
E.a recessionary gap equal to $100 billion.
40.Dissavingoccurs when a household 里弗斯经济学代写
A.spendsmore than it saves.
B.savesmore than it spends.
C.consumes more than it receives in disposable income.
D. borrows.
E.spendsless than it receives in disposable income.
41.Themarginal propensity to save
A.is greater than 1 but less than 2.
B.is negative.
C.is between zero and 1/2.
D.is greater than 1.
E.equals1 – MPC.
42.If a household’s disposable income increases from $12,000 to $22,000 and at the same time itsconsumption expenditure increases from $4,000 to $9,000, then
A.themarginal propensity to save over this range is negative.
B.theslope of the consumption function is 6. 里弗斯经济学代写
C.the marginal propensity to consume over this range is negative.
D.theslope of the consumption function is 5.
E.the household is dissaving.
Use the figure below to answer the following question.
Figure 4
43.Refer to Figure The marginal propensity to consume is
A)0.8. B) 0.75. C) 800. D)0.25. E) 0.2.
44.If real GDP is $3 billion and aggregate planned expenditure is $3.5 billion, then inventories
A.remainthe same and production
B.increase and productions increases.
C.increase and production decreases.
D.decrease and production increases.
E.decrease and production decreases.
45.Suppose real GDP increases by $1 billion and, as a result, consumption increases by $500 million.This change in consumption is
A. induced.
B.autonomous.
C.unplanned.
D.planned.
E.too little.
Refer to the table below to answer the following question. 里弗斯经济学代写
Table 2
46.Table 2 gives the aggregate expenditure schedule. Equilibrium expenditure is equal to .
A.zero B) $4 trillion C) $2 trillion D)$3 trillion E) $5 trillion
47.If there is a decrease in autonomous expenditure, the newAE curve is
A.steeperthan the original AE curve.
B.parallel and above the originalAE curve.
C.flatter than the originalAE curve.
D.parallel and below the originalAE curve.
E.none of the above.
Use the figure below to answer the following question. 里弗斯经济学代写
Figure 5
48.Refer to Figure 5. The economy shown in the graph does not engage in international trade and hasno government. Planned aggregate expenditure equals the sum of consumption expenditure (C) and investment (I). The multiplier for this economy is
A)4 B) 1. C) 2. D)3. E) 2.5.
49.Asthe aggregate expenditure curve becomes steeper, the value of the multiplier becomes
A.greater than 1.
B.larger
C.equalto the marginal propensity to save.
D.smaller.
E.negative.
Use the table below to answer the following question.
Table 3 里弗斯经济学代写
The following table shows the relationship between aggregate planned expenditure and GDP in the hypothetical economy of Econoworld.
50.Refer to Table Autonomous expenditure is
A.$500 billion.
B.$125 billion.
C.$100 billion.
D.$50 billion.
E.zero.
