Module 06 Problem Sets

 

An Excel template is provided for your Problem Sets, use the excel templet please. Each problem is  presented on a separate worksheet represented by the tabs at the bottom  of the Excel worksheet.
 

You must submit only one Excel file for your Problem Sets. To  receive full credit, all work must be shown and the final answer(s) must  be highlighted in yellow, unless answers are derived from a graph  and/or tables.

Module 6 Problem Sets

Principles of Economics

Name:

Date:

Question #1

The means that fiscal policy uses to attain its goals are the manipulation of ____________________ and ____________________________.
			Answers:

Question #2

Welfare spending, unemployment compensation, and direct taxes are all examples of ____________________________.
									Answer:

Question #3

Answer:

When the MPC is 0.8, how much is the multiplier?

Question #4

Answer:

If GDP is 3,400, the multiplier is 5, and I rises by 15, what is the new level of GDP?

Question #5

Answer:

If GDP is 3,900, the multiplier is 8, and G falls by 10, what is the new level of GDP?

Question #6

Answer:

The world’s first bankers were ___________________________.

Question #7

Answers:

What are the three functions of money?

Question #8

Answers:

The M1 money supply consists of _______________________, _______________________, __________________________, and _____________________________.

Question #9

Answer:

Banks are very heavily regulated. The main reason for this is that _______________________________.

Question #10

Answer:

What is the most successful bartering system in the world?

Question #11

Our paper currency is issued by __________________________________.

Answer:

Question #12

Answer:

Our currency is backed by _________________________________________.

Question #13

Answers:

If the Fed wants to increase the money supply, it will follow these steps:

Question #14

Answer:

If the reserve requirement were 15-percent, how much would the deposit multiplier be?

Question #15

Answer:

Control of the Federal Reserve is held by _______________________________.