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LOS e: Discuss the inventory and business cycles and the impact of consumer and business spending plus monetary and fiscal policy on the business cycle.
Q1. Suppose that Government A decreased the tariff on foreign goods and that Government B has moved to a lower marginal tax rate. Analyzing the effects on the long-term growth rate in the economy, which of the following would be most accurate?
A) Government A’s growth rate will increase and Government B’s growth rate will increase.
B) Government A’s growth rate will decrease and Government B’s growth rate will decrease.
C) Government A’s growth rate will decrease and Government B’s growth rate will increase.
Q2. Which of the following regarding the use of monetary policy to stimulate growth or rein in inflation in an economy is most accurate?
A) Neither the direction of a change in interest rates nor the level of interest rates are important.
B) Both the direction of a change in interest rates and the level of interest rates are important.
C) Only the direction of a change in interest rates is important.
Q3. If inflation is targeted at 3%, exports are expected to rise by 5%, consumer spending is expected to increase at 1% and real GDP growth is expected at 2%, what would be the neutral interest rate in the economy?
A) 5%.
B) 3%.
C) 11%.
Q4. Which of the following would indicate the greatest stimulation of economic growth?
A) Tax receipts increase due to changes in the economy.
B) Tax receipts decline due to a new government policy.
C) Tax receipts increase due to a new government policy. | 
发表于 2009-3-5 13:02
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