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
19) An increase in the real interest rate will
20) In the saving-investment diagram, an…