7:411E Initial Questions 3 - Spring 2021... •••In GDP.Figure 16-4Price levelSRASLRASAD,AD2Real GDPBonus 1) Refer to Figure 16-4. In the graph above, suppoinitially at point A. The movement of the economy to poingraph illustrates the effect of which of the following policCongress and the president?A) an increase in transfer paymentsB) an increase in interest ratesC) an increase in the marginal income tax rateD) an open market purchase of Treasury bills 7:411E Initial Questions 3 - Spring 2021... •••Figure 15-2InterestMS2MS1rate, i4%3AMDQuantity of money(billions of dollars)90095018) Refer to Figure 15-2. In the figure above, the movepoint B in the money market would be caused byA) an increase in the price level.B) a decrease in real GDP.C) an open market sale of Treasury securities by the FecD) a decrease in the required reserve ratio by the Federa19) Which of the following is an appropriate discretionaequilibrium real GDP falls below potential real GDP?A) an increase in government purchasesB) an increase in the supply of moneyC) an increase in individual income taxesD) a decrease in transfer payments20) Contractionary monetary policy on the part of the FeA) an increase in the money supply, an increase in intereincrease in GDP.B) a decrease in the money supply, an increase in interesin GDP.C) an increase in the money supply, a decrease in interesin GDP.D) a decrease in the money supply, a decrease in interesin GDP.

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Bonus 1) Refer to Figure 16-4. In the graph above, supp initially at point A. The movement of the economy to poi graph illustrates the effect of which of the following poli Congress and the president? A) an increase in transfer payments B) an increase in interest rates C) an increase in the marginal income tax rate D) an open market purchase of Treasury bills

Bonus 1) Refer to Figure 16-4. In the graph above, supp initially at point A. The movement of the economy to poi graph illustrates the effect of which of the following poli Congress and the president? A) an increase in transfer payments B) an increase in interest rates C) an increase in the marginal income tax rate D) an open market purchase of Treasury bills

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter20: Exchange Rates And The Macroeconomy

Section: Chapter Questions

Problem 3TY

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