QUESTIONS AND 100% Verified ANSWERS
B - answer>>Which of the following is most likely to harm economic growth?
A. Low marginal tax rates
B. Little protection for private property rights
C. Low trade barriers, so that domestic firms are not protected from foreign
competition
D. Markets made up of many competing firms.
B - answer>>Monetary and price instability will
A. make it easier for both individuals and businesses to plan wisely for the future.
B. generate uncertainty, and encourage investors and businesses to move their
activities to countries with a more stable monetary environment.
C. encourage businesses to invest and expand their future output.
D. encourage domestic citizens to increase their rate of saving.
D - answer>>Which of the following is the best choice for measuring
improvements the average person's standard of living?
A. Nominal GDP
B. Nominal GDP per capita
C. Real GDP
D. Real GDP per capita
D - answer>>Which of the following is commodity money?
A. A 10 Euro note printed in 2011
B. A $100 bill printed in 2016
C. $10 trillion Zimbabwe bill printed in 2009.
, FSU Hammock Macro Final EXAM LATEST 2026-
QUESTIONS AND 100% Verified ANSWERS
D. A silver denarius minted in Roman Syria in 335 C.E.
, FSU Hammock Macro Final EXAM LATEST 2026-
QUESTIONS AND 100% Verified ANSWERS
C - answer>>Suppose that the Federal Reserve wants to decrease the money
supply. Which of the following policies would achieve this goal?
A. Decrease the reserve requirement.
B. Buy Treasury Bills from banks.
C. Raise the Discount Rate.
D. Decrease the interest rate paid on reserves held at the Fed.
D - answer>>Which of the following is the most liquid form of money?
A. credit cards
B. a AAA corporate bond
C. money in a savings account
D. money in a checking account
B - answer>>The market for exchanging yen for dollars is in equilibrium. Japan's
central bank then greatly increases its rate of money supply growth, injecting yen
into the Japanese economy much faster than before. Which of the following will
occur?
A. The dollar depreciates relative to the yen.
B. The dollar appreciates relative to the yen.
C. The yen appreciates relative to the dollar.
D. The yen and the dollar both appreciate.
D - answer>>According to the circular flow model, if the loanable funds markets
and foreign exchange markets are in equilibrium, then...
A. the trade deficit will be zero.
B. government spending will equal tax revenue.
, FSU Hammock Macro Final EXAM LATEST 2026-
QUESTIONS AND 100% Verified ANSWERS
C. capital outflow will equal capital inflow.
D. leakages will equal injections.