Practice Quiz

CLEP Principles of Macroeconomics Exam Prep - Question List

Select how would you like to study

Study Mode Free Daily Question Test Mode
41. In the case of a recession, which of the following might the Fed do to counter the financial situation?
  1. Increase taxes
  2. Decrease taxes
  3. Increase government spending
  4. Purchase bonds
See answer
42.

Think about making deposits at a commercial bank. If that bank has no excess reserves and the requirement is 20 percent, how much money would be created in new loans from all banks after this bank gets a deposit of $15,000 and the money multiplier is 5?

  1. $60,000
  2. $10,000
  3. $20,000
  4. $30,000
See answer
43. Which classical economist argued that investment demand does not depend so much upon interest rates, but rather about the expectations about the prosperity of the economy?
  1. Say
  2. Keynes
  3. Fisher
  4. Phillips
See answer
44. What is the correct term for a sustained decrease in the general price level within an economy?
  1. Money illusion
  2. Depreciation
  3. Inflation
  4. Deflation
See answer
45. What is the correct term for the ease with which an asset-typically money-can be converted into spending?
  1. Monetary policy
  2. Marginal propensity to consume
  3. Broad money
  4. Liquidity
See answer

Select how would you like to study

Study Mode Free Daily Question Test Mode