ECO372T Week 5 Apply Fiscal and Monetary Policy SCORE 98 PERCENT

Question 1
The graph below depicts an economy where an increase in aggregate demand has caused inflation. The economy's current level of real GDP (Y2) is above its long-run equilibrium. This is illustrated by the long-run aggregate supply curve (LRAS) and a price level (P2) above the equilibrium value of Pe.
Which of the following is an example of an automatic stabilizer that would help this economy move toward full employment again?
multiple choice
    A reduction in the average tax rate
    An increase in the average tax rate
    A decrease in government purchases
    A reduced need for government transfer payments

Question 2
 For each of the following scenarios, determine which time lag is most likely to result when designing and implementing fiscal policy.



a. The separation of power demonstrated between the legislative and executive branches of government combined with strong partisanship attitude among our elected politicians.

multiple choice 1
    Recognition lag
    Legislative lag
    Implementation lag
    All of these lags

b. The fact that it takes economists working for the National Bureau of Economic Research months to declare the dates of peaks and troughs.

multiple choice 2
    Recognition lag
    Legislative lag
    Implementation lag (Incorrect)
    All of these lags

c. The time it takes to design and build new infrastructure after these projects have been passed by the legislature.

multiple choice 3
    Recognition lag  (Incorrect)
    Legislative lag
    Implementation lag
    All of these lags

Question 3
If the U.S. Congress passes legislation to raise taxes to control demand-pull inflation, then this would be an example of a(n)

Multiple Choice
    contractionary fiscal policy.
    supply-side fiscal policy.
    nondiscretionary fiscal policy.
    expansionary fiscal policy.

Question 4
When changes in taxes and government purchases occur in the economy without explicit action by Congress, such changes are referred to as
    implicit stabilization.
    cyclical stabilization.
    automatic stabilizers.
    discretionary fiscal policy.

Question 5
If taxes and government expenses did not vary with income, then income would
Multiple Choice
    be less stable.
    be more stable.
    be closer to potential income.
    not change.

Question 6
When the federal government changes purchases and/or taxes to stimulate the economy or rein in inflation, such policy is

Multiple Choice
    active monetary policy.
discretionary fiscal policy.
    automatic fiscal policy.
    active federal policy.

Question 7
As the economy declines into recession, the collection of personal income tax revenues automatically falls. This phenomenon best illustrates how a progressive income-tax system

Multiple Choice
    increases crowding out in the economy.
    serves as an automatic stabilizer for the economy.
    offsets the timing problem for fiscal policy.
    decreases real interest rates in the economy.

Question 8
When the federal government cuts taxes and increases purchases to stimulate the economy during a period of recession, such actions are designed to be

Multiple Choice
    expansionary.
    contractionary.
    passive.
    automatic.

Question 9
Due to automatic stabilizers, when the nation's total income rises, government transfer payments

Multiple Choice
    and tax revenues increase.
    increase and tax revenues decrease.
    decrease and tax revenues increase.
    and tax revenues decrease.

Question 10
Which of the following is an example of built-in stability? As real GDP decreases,

Multiple Choice
income tax revenues decrease and transfer payments increase.
    income tax revenues and transfer payments both decrease.
    income tax revenues increase and transfer payments decrease.
    income tax revenues and transfer payments both increase.

Question 11
One timing problem in using fiscal policy to counter a recession is the "legislative lag" that occurs between the

Multiple Choice
    time fiscal action is taken and the time that the action has its effect on the economy.
    start of the recession and the time it takes to recognize that the recession has started.
    time the need for the fiscal action is recognized and the time that the action is taken.
   start of a predicted recession and the actual start of the recession.

Question 12
When the federal government uses taxation and purchasing actions to stimulate the economy it is conducting

Multiple Choice

    monetary policy.
    employment policy.
    incomes policy.
    fiscal policy.

Question 13
Using fiscal policy to stabilize the economy is difficult because

Multiple Choice
    there are time lags involved in the use of fiscal policy.
    potential income is known.
    the effects of policy changes are known with certainty.
    the size of the government debt doesn't matter.

Question 14
Fiscal policy is enacted through changes in

Multiple Choice
    the supply of money and foreign exchange.
    interest rates and the price level.
    unemployment and inflation.
    taxation and government purchases.

Question 15

The time that elapses between the beginning of a recession or an inflationary episode and the identification of the macroeconomic problem is referred to as a(n)

Multiple Choice

    recognition lag.
    budget lag.
   implementation lag.
    legislative lag.

Question 16
Choose the best response for each of the following statements.
a. When the Federal Reserve makes an open market purchase, the Fed:
multiple choice
    sells bonds to the public, which decreases the money supply.
    buys bonds from the public, which increases the money supply.
    sells bonds to the public, which increases the money supply.
    buys bonds from the public, which decreases the money supply.



b. If the Fed wants to increase interest rates, it should make an open market sale .

     This would decrease  the money supply and achieve the increase in interest rates.

Question 17
a. The discount rate is the:

multiple choice 1
interest rate at which banks can borrow reserves from the Federal Reserve.
    interest rate at which banks can borrow reserves from other banks.
    lowest interest rate that banks can charge for loans to their most creditworthy customers.
    lowest interest rate that banks can charge for lending reserves to other banks or financial institutions.



b. If the Fed were to decrease the discount rate, banks will borrow:

multiple choice 2
    more reserves, causing a decrease in lending and the money supply.
    more reserves, causing an increase in lending and the money supply.
    fewer reserves, causing a decrease in lending and the money supply.
    fewer reserves, causing an increase in lending and the money supply.

Question 18
The interest rate that the Fed charges on loans made directly to banks is called _____.

Multiple Choice
    the prime rate
    interest on reserves
    the federal funds rate
the discount rate

Question 19
Economic investment refers to _____.
Multiple Choice
    postponing purchases of goods and services.
making new additions to a firm's stock of capital.
    selling a financial asset for a gain.
    buying a financial asset for a gain.

Question 20
An increase in the money supply, all else held constant, usually _____.
Multiple Choice
    decreases the interest rate and decreases aggregate demand
    decreases the interest rate and increases aggregate demand
    increases the interest rate and decreases aggregate demand
    increases the interest rate and increases aggregate demand

Question 21
If the Fed sells government securities to the general public in the open market, the _____.

Multiple Choice

    Fed gives the securities to the public; the public pays for the securities by writing checks that when cleared will increase commercial bank reserves at the Fed
    public gives the securities to the Fed in exchange for a Fed check, which when deposited at commercial banks will decrease their reserves at the Fed
    public gives the securities to the Fed in exchange for a Fed check, which when deposited at commercial banks will increase their reserves at the Fed
    Fed gives the securities to the public; the public pays for the securities by writing checks that when cleared will decrease commercial bank reserves at

Question 22
Which of the monetary policy tools can alter both the level of excess reserves and the money multiplier?

Multiple Choice
    The federal funds rate
    The reserve requirement
    The discount rate
    Open-market operations

Question 23
The interest rate at which the Federal Reserve Banks lend to commercial banks is called the _____.
Multiple Choice
    short-term rate
    federal funds rate
discount rate
    prime rate

Question 24
The purchase and sale of government securities by the Fed is called _____.
Multiple Choice
    federal funds market
    money market transactions
    term auction facility
    open market operations

Question 25
The purpose of expansionary monetary policy is to increase _____.
Multiple Choice
    real GDP
    the GDP gap
    interest rates
    the inflation rate

Question 26
The discount rate is the interest _____.

Multiple Choice

    rate at which commercial banks lend to the public
    yield on long-term government bonds
rate at which the Federal Reserve Banks lend to commercial banks
    rate at which the central banks lend to the U.S. Treasury

Question 27
Financial markets pay close attention to changes in the federal funds rate because these changes _____.
Multiple Choice
    affect other interest rates in the economy
    indicate commercial bank lending policies
    directly affect the interest payments on the national debt
    directly affect a large volume of loans

Question 28
The Fed directly sets _____.The Fed directly sets _____.
Multiple Choice
    neither the federal funds rate nor the prime rate
    the prime rate but not the federal funds rate
    the discount rate and the prime rate
    both the federal funds rate and the prime rate

Question 29
Which of the following statements is true?
Multiple Choice

    The Federal Reserve does not set the federal funds rate, but it influences it through the use of its open-market operations.
    The Federal Reserve sets the federal funds rate.
    The Federal Reserve will set a higher target for the federal funds rate if pursuing an expansionary monetary policy.

    The Federal Reserve sets the target for the federal funds rate, and then uses the reserve requirement to push banks toward that target.

Question 30
When the Federal Reserve Banks decide to buy government bonds from banks and the public, the supply of reserves in the federal funds market _____.
Multiple Choice
    increases and the federal funds rate increases
    decreases and the federal funds rate increases
    decreases and the federal funds rate decreases

    increases and the federal funds rate decreases

ECON201 Week 5 Discussion Business and their costs

Complete the following simulation and answer the questions below.

• What factors affected demand for your product?
• What pricing strategies did you use?
• Describe your most successful day and your least successful? Why were they successful or unsuccessful?
• What was your total # of cups sold at the end of the week?

ECON201 Week 8 Course Reflection

Did you find the subject to be more applicable to your everyday life than you expected?

What surprised you the most of the content in this course?

Please do not hesitate to share additional comments outside of the scope of these questions.

ECON372 Week 4 Discussion - Money Supply Effects on Interest Rates

Explain what happens to the interest rate if the money supply increases or decreases and the money demand remains unchanged. Explain what happens to the interest rate if the money demand increases or decreases and the money supply remains unchanged.

EDUC111 Discussion Week 3 Physical Development

Discussion Week 3: Physical Development

In your own words, describe what you would look for when observing students as indicators that they are progressing in their physical development. Give specific examples

EDUC111 Observation Techniques Week 2 Assignment

Week 2 Assignment: Cognitive and Socio-Emotional Development

Due: Due by 11:59 p.m., ET, Sunday at the end of Week 2

Directions: Select a five minute video of preschool children to use for this project. You can choose any video that you find interesting. It is suggested that you start by going to YouTube and type in search phrases such as preschool children or preschool aged children at play. Finding the videos is your responsibility. I realize not every video will work perfectly for this project. Find one that is close. For any items not observed, write N/A.

Include a summary with your work.

• What did you learn from the project?
• How will you apply what you learned to your future work? Give concrete examples

Your summary should be at least three paragraphs.

 

 

EDUC111 Week 3 Assignment

Week 3 Assignment

Due: Due by 11:59 p.m., ET, Sunday at the end of Week 3

Directions: You have learned about cognitive, socio-emotional and physical domains/development. For this project, synthesize what you have learned about each area of development into one paper. Your paper should include the following topics (with related headings):

Cognitive Development - Write about what you have learned and give at least 2-3 concrete examples of how you will apply the information to your own classroom, home setting, etc. Cite and reference your points.

Socio-Emotional Development - Write about what you have learned and give at least 2-3 concrete examples of how you will apply the information to your own classroom, home setting, etc. You may use fictional scenarios to help clarify your examples. Cite and reference your points.

Physical Development -Write about a fictional child who is struggling in this area. Include concrete steps to help him or her and include ways to monitor your results and the child's progress. Cite and reference your points.

Summary/Conclusion-Include a summary that synthesizes what you have learned about all three areas of development. Explain how the three areas overlap and why they are important to understand, observe, and attend to in classrooms or other settings.