1.What causes demand-pull inflation?
2.Which type of inflation causes prices to increase in the first sector, stay constant in the second sector, and rise overall?
3.Which of the following statements are true during a period of stagflation?
4.Which of the following indicators are used to measure inflation?
5.Which of the following fiscal incentives are commonly used to attract foreign businesses?
6.What type of income tax system requires individuals with greater earnings to pay a larger percentage of their income in taxes?
7.What do the Bank of England and the Federal Reserve have in common?
8.Monetary policy primarily influences which two economic factors?
9.How does a decrease in interest rates affect the monetary base, consumer credit availability, and the cost of consumer credit?
10.Which variable do central banks typically set directly, and which variable adjusts as a consequence?
11.What is it called when the central bank purchases financial assets in the open market to expand the monetary base?
12.M4 is considered a __________ monetary aggregate and encompasses deposits held at both __________ and __________?
13.Assuming all other factors remain constant, what happens to the quantity of real money holdings when interest rates increase?
14.Holding money aside to be prepared for unexpected opportunities is an example of which type of money demand?
15.What happens to the money multiplier when banks and private businesses choose to keep less cash on hand?
16.How do banks effectively generate new money?
17.What are the three primary functions of money?
18.What does each point on the LM curve signify in terms of market equilibrium?
19.Which curve represents the positive correlation between the equilibrium levels of aggregate output and the interest rate within the money market?
20.What does each point on the IS curve signify in terms of market equilibrium?