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(Solved): Q 23: If the central bank increased the supply of money, then the LM curve would: A. become steeper. ...
Q 23: If the central bank increased the supply of money, then the LM curve would: A. become steeper. C. shift upward. B. become flatter. D. shift downward. because wages Q24: Some economists theorize that when the price level increases, firms will increase production do not rise as quickly as output prices. The implication of this theory, known as theory, is an upward-sloping short run aggregate supply curve. A. Sticky interest rates C. Crowding out B. Sticky wage D. Misperceptions Q 25: In a fractional reserve banking system, if a customer deposits $100 into his checking account, the bank's reserve holdings will because A. increase by less than $100; the banks may choose to lend out excess reserves. B. increase by $100; the banks may choose to lend out excess reserves. C. stay the same; the banks will lend all $100 out as loans. D. increase by $100; the banks have to keep all the reserves in the bank vaults. Q 26: If the short run aggregate supply curve increases, the price level will amount of output will in the short run. A. Decrease; increase C. Decrease; remain unchanged B. Decrease; decrease D. Increase; increase and the Q 27: Suppose we write the Keynesian consumption function as C = A +cY where A> 0 and 0
Q 23: If the central bank increased the supply of money, then the curve would A. become stecper. C. shift upward II. become flatiee. D. shif downward. Q 24: Some economists theorize that when the price level increases, firms will increawe production becatise wages do not rise as quickly as output prices. The implieation of this theory, known as theory, is an upward-sloping sbort run aggregate supply curve. A. Stichy interest rates C. Crowding but B. Sticky wage D. Misperceptions Q 25: In a fractional reserve banking system, if a customer deposits into his checking account, the bank"s rescrve holdings will because A. increase by less than ; the banks may choose to lend oul exeess reserves. 13. increase by 5100 ; the banks may choose to lend out exeess reserves. C. stay the same; the banks will lend all out as loans. D. increase by ; the banks have to keep all the reserves in the bank vaults. Q 26: If the short run aggregate supply curve increases, the price level will and the amount of output will in the short run. A. Decrease, increase B. Decrease; decrtase C. Decrease; remain unchanged D. Increase; inerease Q 27: Suppose we write the Keynesian consumption function as where and . The marginal propensity to consume can then be written as: A. B. C. D. Q28: At the point where the eurve and the curve intersect, the: A. goods market is in cquilibrium. B. moncy market is in equilibrium. C. labor market is in equilibrium. D. money and the goods market are in equilibrium. Q 29: Which of the following is an example of an unemployed worker? A. Eli is in high school and doesn't have time to hold down a job. B. Eric quit his job at the movie theatre and has since applied for a job opening at the ballpark. C. Alex is an artist who sells paintings at his own gallery. D. Melanic is a retired cheese-maker who now enjoys gardening. Q 30: Which of the following is not a function of money? A. It is a means of production. B. It is a unit of account. C. It is a store of value. D. It is a medium of exchange.
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