[{"id":213904,"question":"A good that is used as a medium of exchange as well as being a consumption good is called.","choices":[{"text":"A barter money","value":"A"},{"text":"A commodity money","value":"B"},{"text":"A legal tender","value":"C"},{"text":"A debased money","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213903,"question":"Money's primary role in the economy comes from the benefits of lowering transactions costs and allowing specialization This function of money is called.","choices":[{"text":"Store of value","value":"A"},{"text":"Medium of exchange","value":"B"},{"text":"Standard of deferred payment","value":"C"},{"text":"Unit of account","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213902,"question":"In economics money refers to","choices":[{"text":"Income","value":"A"},{"text":"Wealth","value":"B"},{"text":"Assets use and accepted an payment","value":"C"},{"text":"Currency","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213901,"question":"The use of money is more efficient than barter because the introduction of money","choices":[{"text":"Reduces the need for economic specialization","value":"A"},{"text":"Reduces the need to exchange goods","value":"B"},{"text":"Reduce the need for other stores of value","value":"C"},{"text":"Reduces transaction costs","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213900,"question":"A major advantage of monetary over fiscal policy is that monetary policy","choices":[{"text":"Can be put into effect more quickly","value":"A"},{"text":"Affects all sectors of the economy equally","value":"B"},{"text":"Authorities are quicker to see the need for policy","value":"C"},{"text":"Has a more direct and predictable impact on spending.","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213899,"question":"The limit of an economy's total productive capacity at any given time is set by","choices":[{"text":"The amount of money in circulation","value":"A"},{"text":"Business demand for goods and services","value":"B"},{"text":"The level of government spending and taxation","value":"C"},{"text":"the quantity and quality of its productive resources","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213898,"question":"A sale of bonds by the central bank should cause.","choices":[{"text":"A fall in the interest rate","value":"A"},{"text":"An increase in the money supply","value":"B"},{"text":"A decrease in the reserves of the commercial banks","value":"C"},{"text":"An increase in the commercial banks loans to the public","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213897,"question":"The near term effect of an unexpected sale of bonds by the central bank is.","choices":[{"text":"An increase in interest rates, a risen investment and a rise in GDP","value":"A"},{"text":"An increase in interest rates a drop in investment and a drop in GDP","value":"B"},{"text":"A decrease in interest rtes a rise in investment and a rise in GDP","value":"C"},{"text":"A decrease in interesr rates a drop in investment and a drop in GDP","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213896,"question":"Which of the following causes M1 demand to decrease.","choices":[{"text":"A fall in the tax rate","value":"A"},{"text":"An increase in income","value":"B"},{"text":"A fall in the interest rate","value":"C"},{"text":"An increase in the use of credit cards","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213895,"question":"Which of the following causes M1 demand is decrease.","choices":[{"text":"A fall in the tax rate","value":"A"},{"text":"An increase in income","value":"B"},{"text":"A fall in the interest rate","value":"C"},{"text":"An increase in the use of credit cards","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213894,"question":"What major advantage of monetary policy over fiscal policy does this clipping underline.","choices":[{"text":"Monetary policy is more effective","value":"A"},{"text":"Monetary policy is lss discriminatory","value":"B"},{"text":"Monetary policy can influence interest rates","value":"C"},{"text":"Monetary policy can be undertaken more quickly","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213893,"question":"\"Some economists criticized the central bank for not moving in the face of the waning recovery One who prefers anonymity stated the failure to move today leaves us with low inflation a weak economy and climbing jobless claims these are classic signs of an impending downturn The fed fiddles while the economy burns This economist would want to see.","choices":[{"text":"A higher interests rate","value":"A"},{"text":"A higher reserve requirement","value":"B"},{"text":"a decrease in the money supply","value":"C"},{"text":"An increase in the money supply","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213892,"question":"\"Rising productivity does not in itself spell the end of inflation. With enough______ it would still be possible to whip prices into a froth the blank is best filled with.","choices":[{"text":"Income growth","value":"A"},{"text":"Unemployment","value":"B"},{"text":"Money growth","value":"C"},{"text":"Taxes","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213891,"question":"If firms paying employees monthly began paying them weakly then the demand for money would.","choices":[{"text":"Rise and income would rise","value":"A"},{"text":"Rise and income would fall","value":"B"},{"text":"Fall and income would rise","value":"C"},{"text":"Fall and income would fall","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213890,"question":"Suppose velocity is constant and the real income elasticity of the demand for money is less than one then estimating inflation as money growth rate minus real growth rate.","choices":[{"text":"Overestimates inflation","value":"A"},{"text":"Underestimates inflation","value":"B"},{"text":"Is an erratic estimate of inflation","value":"C"},{"text":"Remain an accurate estimate of inflation.","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213889,"question":"Suppose you are a monetarist and believe in the the monetarist rule which the monetary authorities appear to be following if the economy beings to experience a slight increase in the inflation rte you would recommend that the monetary autorities.","choices":[{"text":"Increase the money growth rate slightly","value":"A"},{"text":"Decrease the money growth rate slightly","value":"B"},{"text":"Leave the money supply growth unchanged","value":"C"},{"text":"Enact a one time slight decrease in the money supply","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213888,"question":"Believers in the monetarist rule assert that","choices":[{"text":"Lags are long and variable","value":"A"},{"text":"the economy cna be stabilized by automatic mechanisms","value":"B"},{"text":"The central bank should keep the money supply growth constant","value":"C"},{"text":"All of the above","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213887,"question":"The aggregate demand curve is downward sloping because a higher price level.","choices":[{"text":"Makes people wealthier and so they spend more","value":"A"},{"text":"Causes higher wages and so people spend more","value":"B"},{"text":"Cuts the real value of income and so people spend less","value":"C"},{"text":"Decreases the real supply of money decreasing spending.","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213886,"question":"Knowledge of the money supply can lead to good predications of nominal GDP only","choices":[{"text":"If the price level is stable","value":"A"},{"text":"If the money supply is stable","value":"B"},{"text":"Over very short periods of time","value":"C"},{"text":"If the determinants of velocity are known","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213885,"question":"A major advantage of monetary over fiscal policy is that monetary policty.","choices":[{"text":"Can be put into effect more quickly","value":"A"},{"text":"Affects all sectors of the economy equally","value":"B"},{"text":"Authorities are quicker to see the need for policy","value":"C"},{"text":"Has a more direct and predictable impact on spending.","value":"D"},{"value":"E"}],"correctAnswer":1}]