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Which of the following would shift aggregate demand to the left?

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Question

Which of the following would shift aggregate demand to the left?
a. The European Union

emerges from recession.

b.

A study predicts that the recent drought will increase food prices this winter.

c.

The value of the dollar increases.

d.

A rise in the price level reduces saving and increases interest rates.

e.

There is a rise in the median price of houses.

 
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A U.S. federal government budget

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Question

A U.S. federal government budget deficit occurs when:
a.the United States lends money to

foreign countries.

b.government revenue exceeds outlays.

c.government outlays exceed revenue.

d.the United States borrows money from foreign countries.

e.government outlays equal revenue.

 
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An impact lag happens because:

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Question

An impact lag happens because:
a.the impacts of recessions are felt sooner than the impacts of

expansions.

b.it takes time for the complete effects of monetary and fiscal policy to materialize.

c.it is difficult to determine when the economy is turning up or down.

d.in most nations, one or more governing bodies must approve government spending or new tax policies.

 
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When can a bank make loans?

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Question

When can a bank make loans?
a.only when a bank is confident that it can meet all the cash needs

of depositors

b.when the bank has the minimum amount of required reserves

c.There is not enough information to solve this problem.

d.when the bank has reserves greater than the amount of required reserves

e.only when a bank has deposited all cash at the Federal Reserve

 
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