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Money functions as

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all of these

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If you place a part of your summer earnings in savings account, you are using money primarily as a:

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store of value

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A $70 price tag on a sweater in a department store window is an example of money functioning as a:

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unit of account

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The paper money used in the United States is a:

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Federal Reserve Note

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In the United States, the money supply (m1) is comprised of:

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coins, paper currency, and checkable deposits

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Currency held in the vault of First National Bank is:

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Not counted as part of the money supply

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Checkable deposits are classified as money because:

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they can be readily used in purchasing goods and paying debts.

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In defining money as M1, economists exclude time deposits because:

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they are not directly or immediately a medium of exchange.

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Which of the following is not part of the M2 money supply?

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large-denominated tie deposits

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The M2 money supply includes:

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individual shares in money market mutual funds.

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Currency in circulation is part of:

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both M1 and M2

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If you are estimating your total expenses for school next semester, you are using money primarily as:

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a unit of account.

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Purchasing common stock by writing a check best exemplifies money serving as a:

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medium of exchange.

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Checkable deposits include:

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the deposits of banks and thrifts on which checks can be written.

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Assuming no other changes, if checkable deposits increase by $40 billion and currency in circulation decreases by $40 billion, the:

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M1 money supply will not change.

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\"Near-monies\" are included in:

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M2 only.

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Money supply for M1 for this economy is :

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$130

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Money supply for M2 for this economy is:

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$480

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The money supply is backed:

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by the government's ability to control the supply of money and therefore to keep its value relatively stable.

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Which of the following does NOT explain what backs the money supply in the United States?

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It is backed by gold.

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Stabilizing a nation's price level and the purchasing power of its money can be achieved:

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with both fiscal and monetary policy.

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The Federal Reserve System was created in:

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1913

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In the U.S. economy the money supply is controlled by the:

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Federal Reserve System

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Which one of the following is true about the U.S Federal Reserve System?

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There are 12 regional Federal Reserve Banks.

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The group that sets the Federal ReserveSystems policy on buying and selling government securities (bills, notes, and bonds) is the\"

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Federal Open Market Committee (FOMC)

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The members of the Federal Reserve Board:

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are appointed for 14-year terms.

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The members of the of the Board of Governors of the Federal Reserve System are:

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Appointed by the President with the confirmation of the Senate

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The Board of Governors of the Federal Reserve has ______ members

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7

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A group of three economists appointed by the President to provide fiscal policy recommendations's the:

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Council of Economics Advisors

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Fiscal policy refers to the:

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The managing of government spending and taxes to stabilize domestic output, employment, and the price level.

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If the MPC in an economy is .8, the government could shift the aggregate demand curve rightward by $100 billion by:

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Decreasing taxes by $25 billion

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Since 2002, the United States has had:

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Large Federal budget deficits

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Discretionary fiscal policy is so named because it:

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Involves specific changes in T and G, undertaken expressly for the stabilization, at the option of Congress.

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The immediate primary cause of the swing from a Federal budget surpluses in 2000 and 2001 to a budget deficit in 202 was:

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The recession of 2001

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Countercyclical discretionary fiscal policy calls for:

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Deficits during recession's and surpluses during periods of demand-pull inflation.

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In an aggregate demand-aggregate supply diagram, equal increases in government spending and taxes will:

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Shift the AD curve to the right

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The effect of a government surplus on the equilibrium level of GDP is sustainability the same as:

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an increase in saving

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A tax reduction of a specific amount will be more expansionary, the:

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larger is the economy's MPC

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An economist who favored expanded government would reccommended

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Increases in government spending during a recession a tax increases during inflation.

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If the MPC in an economy is at .75, government could shift the aggregate demand curve leftward by $60 billon:

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Increasing taxes by $20 billion

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Which of the following represents the most expansionary fiscal policy:

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A $10 billion increase in government spending

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Built-in stability means that:

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with given tax rates and expenditure policies, a rise in domestic income will reduce a budget

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The federal budget deficit us found by:

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subtracting government revenues from government spending in a particular year

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The actual budget deficits of the Federal Government in 2009 was about 1.4 trillion. On the basis of this information alone, it:

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cannot be determined whether the government engaged in expansionary or contractionary fiscal policy that year.

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If the MPS in an economy is .1 government could shift the aggregate demand curve rightward $40 billion by:

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Increasing government spending by $4 billion

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Currency (paper money plus coins) constitutes about:

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75 percent of the U.S M1 money supply

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To say money is \"socially defined,\" means that:

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whatever performs the functions of money extremely well is considered to be money

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Expansionary fiscal policy is so named because:

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Is designed to expand for real GDP

Chapter 31-32: Expansionary Fiscal Policy

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