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(05.04 MC) Which of the following will lead to an increase in a country’s existing national debt?

(05.03 MC) Assume that an economy is characterized by its efficient use of available human resources. The central bank of this economy enacted the expansionary monetary policy that influences the available money supply. Which of the following is true in this scenario?

(02.02 MC) Which of the following represents a limitation in the measurement of the GDP?

(02.04 LC) The consumer price index tends to ________ the substitution of lower-priced goods, which has the effect of ________ inflation.

(06.03 MC) The United States and the countries of Europe are trading partners. If the average income of dollar holders increases, what should be the result in the market for the euro, the currency of many European countries?

(05.07 MC) Which of the following policies will have a positive impact on the growth of an economy in the long run?

(03.02 MC) Assume that the government of a country decides to give out tax refunds of $4.5 million to small domestic firms that are struggling. If the marginal propensity to save in the country is 0.25, then what is the maximum impact this measure will have on the GDP of the country?

(04.03 LC) The basic money supply, M1, is defined as the value of

(03.08 LC) The policy actions taken by the government in discretion do not have much impact on the economy. Which of the following are potential weaknesses of discretionary fiscal policies?

(02.07 MC) A country’s unemployment rate is extraordinarily low and inflation is beginning to rise sharply. Its real GDP growth is still positive but has started to slow down. Which point of the business cycle best describes this economy?