Question

Please write down whether the following statements are true or false, and explain your answer very briefly

A)If actual investment is greater than planned investment, inventories increase more than planned.

 

B)The marginal propensity to consume is the change in consumption expenditure divided by the percentage change in income.

 

C)Gross domestic product (GDP) is the value of all goods and services produced in an economy over a particular time period.

 

D)Monetary policy refers to taxation and spending policies implemented by government.

 

E)In a simple Keynesian model (with lump-sum taxes and a MPC of 0.8), a tax cut of 20 billion TL will have less of an impact on GDP than an increase in government spending of 10 billion TL.

 

D)When you take 1000 TL from your savings account and deposit it in your checking account, M2 decreases.

 

F)An open market purchase of government securities (such as Treasury Bills) by the Central Bank will decrease the money supply and raise the interest rate.

 

G) If the price level increases and the money supply is unchanged, interest rates will fall.

 

H)Money supply is positively sloped.

 

J)When overall price level increases, Money demand shifts leftwards and interest rate decreases.

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