Moodle Activity 3 Assessment (2%) ec 301 PDF

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5/31/2020

Moodle Activity 3 Assessment (2%): Attempt review

Started on State Completed on Time taken Marks Mark Question

Saturday, 21 September 2019, 10:15 PM Finished Saturday, 21 September 2019, 10:18 PM 3 mins 28 secs 19.00/20.00 1.90 out of 2.00 (95%)

1

Correct Mark 1.00 out of 1.00

Conventional money demand functions tended to ________ money demand in the middle velocity beginning in 1982. Select one: a. underpredict; overpredict b. overpredict; overpredict 

Correct

c. overpredict; underpredict d. underpredict; underpredict

Your answer is correct.

The correct answer is: overpredict; overpredict

Question

2

Correct

The speculative demand for money may not exist because

Mark 1.00 out of 1.00

Select one: a. government regulations have eliminated risk in the financial markets. b. banks now pay interest on some types of checkable deposits. c. the transactions demand can be shown to depend on interest rates. d. there are alternative riskless assets paying higher returns than the return on money.  Correct

Your answer is correct. The correct answer is: there are alternative riskless assets paying higher returns than the r

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Question

4

Correct Mark 1.00 out of 1.00

In the Baumol-Tobin analysis of transactions demand, scale economies imply that an incre quantity of money demanded ________, while an increase in the price level increases the q ________. Select one: a. proportionately; more than proportionately b. proportionately; less than proportionately c. more than proportionately; proportionately d. less than proportionately; proportionately 

Correct

Your answer is correct. The correct answer is: less than proportionately; proportionately

Question

5

Correct

If there are economies of scale in transactions demand for money, as income increases, mo

Mark 1.00 out of 1.00

Select one:

 a. increases less than proportionately.

Correct

b. increases more than proportionately. c. increases proportionately. d. does not change.

Your answer is correct. The correct answer is: increases less than proportionately.

Question

6

Correct

In the liquidity trap, the money demand curve

Mark 1.00 out of 1.00

Select one: a. is positively sloped. b. is horizontal. 

Correct

c. is negatively sloped. d i

i l

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Question

7

Correct Mark 1.00 out of 1.00

The reason that economists are so interested in the stability of velocity is because if the dem steady growth of the money supply. Select one: a. is going to promote price stability at the expense of low unemployment. b. is an ineffective way to conduct monetary policy. 

Correct

c. is going to promote low unemployment at the expense of price stability. d. can still be used to conduct monetary policy if the goal is price stability.

Your answer is correct. The correct answer is: is an ineffective way to conduct monetary policy.

Question

8

Correct Mark 1.00 out

In a liquidity trap, monetary policy has ________ effect on aggregate spending because a ch ________ effect on interest rates.

of 1.00

Select one:

 a. no; no

Correct

b. no; a small c. no; a large d. a large; a large

Your answer is correct. The correct answer is: no; no

Question

9

Correct Mark 1.00 out of 1.00

The evidence on the interest sensitivity of the demand for money suggests that the demand interest rates, and there is ________ evidence that a liquidity trap exists. Select one: a. sensitive; substantial b. insensitive; substantial c. insensitive; little

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Question

10

Correct

The theory of portfolio choice indicates that factors affecting the demand for money includ

Mark 1.00 out of 1.00

Select one:

 a. All answers correct

Correct

b. income. c. nominal interest rate. d. liquidity of other assets.

Your answer is correct. The correct answer is: All answers correct

Question

11

Correct Mark 1.00 out

The portfolio theories of money demand state that the demand for real money balances is ________ related to the nominal interest rate.

of 1.00

Select one: a. negatively; positively b. negatively; negatively c. positively; negatively 

Correct

d. positively; positively

Your answer is correct.

The correct answer is: positively; negatively

Question

12

Correct

The Keynesian demand for real balances can be expressed as

Mark 1.00 out of 1.00

Select one: a. Md/P = f(i,Y).  b. Md= f(i,Y). c. M d/P = f(Y). d Md/P

f(i)

Correct

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Question

13

Correct

Keynes's liquidity preference theory indicates that the demand for money is

Mark 1.00 out of 1.00

Select one: a. positively related to interest rates. b. negatively related to bond values. c. negatively related to interest rates. 

Correct

d. constant.

Your answer is correct. The correct answer is: negatively related to interest rates.

Question

14

Correct

Keynes's theory of the demand for money is consistent with

Mark 1.00 out of 1.00

Select one: a. a relatively stable velocity. b. a constant velocity. c. countercyclical movements in velocity. d. procyclical movements in velocity.



Correct

Your answer is correct. The correct answer is: procyclical movements in velocity.

Question

15

Correct Mark 1.00 out of 1.00

Only when budget deficits are financed by money creation does the increased government ________. Select one: a. an increase; monetary base  b. a decrease; money multiplier c. an increase; money multiplier

Correct

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Question

16

Correct Mark 1.00 out

Methods of financing government spending are described by an expression called the gove states the following:

of 1.00

Select one: a. DEFICIT = (G - T) = ΔMB/ΔBONDS.

 b. DEFICIT = (G - T) = ΔMB + ΔBONDS.

Correct

c. DEFICIT = (G - T) = ΔMB - ΔBONDS. d. DEFICIT = (G - T) = ΔBONDS - ΔMB.

Your answer is correct. The correct answer is: DEFICIT = (G - T) = ΔMB + ΔBONDS.

Question

17

Correct Mark 1.00 out of 1.00

The quantity theory of inflation indicates that if the aggregate output is growing at 3% per ye is 5%, then inflation is . Select one: a. 8%. b. 2%. 

Correct

c. 1.6%. d. -2%.

Your answer is correct. The correct answer is: 2%.

Question

18

Correct Mark 1.00 out of 1.00

Fisher's quantity theory of money suggests that the demand for money is purely a function effect on the demand for money. Select one: a. interest rates; income has b. government spending; interest rates have c. income; interest rates have 

Correct

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Question

19 Cutting the money supply by one-third is predicted by the quantity theory of money to caus

Incorrect Mark 0.00 out of 1.00

Select one: a. a decline in real output by one-third.

Answer: a decline in the price level by

b. a decline in the price level by one-third. c. a decline in output by one-sixth, and a decline in the price level of one-sixth. d. a sharp decline in RGDP of one-third in the SR, and a fall in the P one-third in lon

Your answer is incorrect. The correct answer is: a decline in the price level by one-third.

Question

20

Correct

If nominal GDP is $8 trillion, and the money supply is $2 trillion, velocity is

Mark 1.00 out of 1.00

Select one: a. 0.25. b. 4. 

Correct

c. 16. d. 8.

Your answer is correct. The correct answer is: 4.

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