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ECO 372T Wk 4 - Apply: Quiz

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ECO 372T Wk 4 - Apply: Quiz

he economy is in a recession. The government enacts a policy to increase spending by $6 billion. The MPS is 0.25. What would be the full increase in real GDP from the change in government spending, assuming that the aggregate supply curve is horizontal across the range of GDP being considered?

Multiple Choice

  •      $24 billion
  •      $6 billion
  •      $144 billion
  •      $12 billion

 

 

 

Money Market Mutual Fund Balances Held by Businesses   $100

Money Market Mutual Fund Balances Held by Individuals  250

Currency in Banks  10

Currency in Circulation  60

Savings Deposits, Including Money Market Deposit Accounts    80

Large-denominated ($100,000 or more) Time Deposits       180

Small-denominated ($100,000 or less) Time Deposits  110

Checkable Deposits70

 

Refer to the table. The value of the near monies that are part of M2 is

Multiple Choice

  •      $440.
  •      $250.
  •      $80.
  •      $450.

 

 

 

Money Market Mutual Fund Balances Held by Businesses   $100

Money Market Mutual Fund Balances Held by Individuals  220

Currency in Banks  10

Currency in Circulation  70

Savings Deposits, Including Money Market Deposit Accounts    50

Large-denominated ($100,000 or more) Time Deposits       180

Small-denominated ($100,000 or less) Time Deposits  80

Checkable Deposits80

 

Refer to the table. Money supply M2 for this economy is

Multiple Choice

  •      $500.
  •      $70.
  •      $80.
  •      $510.

 

 

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