Read before bidding. These are practice questions from instructor, I will pick one of you guys to do my online timed test. I don’t want to risk it. Thats why I need to pick the writer carefully. Again, its not a paper, they multiple choicesquestions. Don’t talk to me after you bid, Just give me the answers then I know who I should pick.

1. Fiscal policy is said to mitigate the effects of a recession when
A. government purchases rise.
B. tax rates increase on federal income taxes.
C. the Congress prints more money.
D. transfer payments are reduced.
E. both A and B.
2. The price of a bond will ____ if there is a ____ in the interest rate (on the same type of bonds).
A. rise/rise.
B. fall/fall.
C. be unaffected/rise.
D. rise/fall.
E. none of these.
3. Which account of the US balance of payments is affected when the rest of the world purchases US financial assets.
A. Capital Account: Capital Outflows
B. Capital Account: Capital Inflows
C. Current Account: Imports
D. Current Account: Exports
E. None of the above.
4. A relative fall in American interest rates will
A. cause an appreciation of the dollar.
B. cause a depreciation of the dollar.
C. increase the demand for dollars.
D. decrease the supply of dollars.
E. none of the above.
5. Which is not a financial intermediary?
A. Shares of Stock
B. Pension Fund
C. Mutual Fund
D. Investment Banker
E. Bank

1. Which shift of the model is correct when resource prices fall dramatically?
A. aggregate demand increases.
B. aggregate supply increases.
C. aggregate demand decreases.
D. aggregate supply decreases.
E. both a and b.
2. If the Fed chooses discretionary monetary policy, then it would
A. conduct expansionary monetary policy to reduce the fed funds rate.
B. conduct expansionary monetary policy to increase the fed funds rate.
C. conduct restrictive monetary policy to reduce the fed funds rate.
D. set the fed funds rate higher by decree.
E. reduce the fed funds rate by decree.
3. Imagine that the economy is operating at its natural level, and the Fed suddenly increases the supply of money by 10%. Which of the following would we expect to happen?
A. an immediate drop in interest rates.
B. a investment spending boom while interest rates are low.
C. a lower unemployment rate temporarily.
D. ultimately, a higher level of prices than would have prevailed otherwise.
E. all of the above.
4. Economists have concluded that monetary policy by itself cannot reduce the unemployment rate ________ , but it can reduce it _______ at the cost of higher______.
A. temporarily/ permanently/ inflation.
B. temporarily/ permanently/ trade deficits.
C. permanently/ temporarily/ inflation.
D. for more than a few days/ permanently/ inflation.
E. permanently/ temporarily/ real interest rates.
5. If output decreases while inflation increases, the model for aggregate demand and supply shows
A. aggregate supply increasing.
B. aggregate supply decreasing.
C. long-run potential decreasing.
D. aggregate demand increasing.
E. aggregate demand decreasing.