This pack of ECO 316 Week 4 Chapter 24 Linking the Financial System and the Economy The IS-LM-FE Model contains:
24.1 Multiple Choice Questions
1) Why did the Fed cut interest rates in late 1991?
2) Why did the Fed cut interest rates in late 1998?
3) A general equilibrium is an outcome in which
4) The money market includes trade in
5) Purchases and sales of stocks, bonds, and houses take place
6) In macroeconomic models, Y typically represents
7) In macroeconomic models, Y stands for
8) An increase in the expected profitability of investment will cause
9) A closed economy is one in which
10) In a closed economy, the total quantity of goods demanded equals the sum of
11) In a closed economy, the goods market is in equilibrium when
12) In a closed economy, if the goods market is in equilibrium, national saving is $2 trillion, national consumption is $7 trillion, and government purchases are $2.5 trillion, then GDP equals
13) In a closed economy, national saving equals
14) For the goods market to be in equilibrium in a closed economy, which of the following must be true?
15) Which of the following is NOT a key factor in determining household saving?
16) An increase in the expected real interest rate will have a
17) An increase in government purchases reduces national saving as long as
18) Evidence suggests that when government purchases rise
