Econ Test 3

If an economy has a structural deficit and a cyclical deficit, one can conclude that

In 2005, federal government spending was what percentage of GDP?

In 2005, federal government tax revenues were what percentage of GDP?

In 2005, the top 1 percent of income earners in the United States paid_____ percent of federal income taxes.

What are 4 examples of discretionalry fiscal policy?

Unemployment compensation benefits is an example of

Suppose that the income tax rate rises as taxable income rises.

If taxable income rises in the economy, the "higher tax rate at a higher taxable income" is an example of

Keynesians would propose discretionary contractionary fiscal policy if

Which economist is known for arguing that current taxpayers will likely leave bequests to their heirs for the purpose of paying higher future taxes?

The Laffer curve shows what 4 things?

What is the formula to get tax revenues?

Suppose the government attempts to stimulate the economy by increasing purchases without increasing taxes.

What can be a statements most likely to be accepted by someone who believes in crowding out?

Fiscal policy is likely to be ineffective at removing the economy from a recessionalry gap if

According to __________ economists, current consumption may fall as a result of ______________ fiscal policy

Who said, "High tax rates are followed by attempts of ingenious men to beat them as surely as snow is followed by little boys on sleds"?

If the percentage decrease in the tax rate is greater than the percentage increase in thaxable income, then

Fiscal policy can be effective at removing the economy from a ______________

If there is complete crowding out, fiscal policy is likely to be ineffective at ____________

New classical economist argue that individuals will link expansinary fiscal policy to higher future taxes and...

The change in Real GDP equals ____________ by the change in _____________

In 2005, the average American working ______ days to pay all federal, stae, and local taxes.

The ___________ tax rate is equal to the change in one's tax payment divided by the change in one's taxable income.

On the ________ __________ portion of the Laffer curve, a cut in tax rates will raise tax revenues.

Tax revenues are equal to the tax base multiplied by the average ______ ______

________ __________ refers to the decrease in private expenditures that occurs as a consequence of increased government spending and/or the greater financing needs of a budget defict.

If chalk is widely accepted for purposes of exchange than

Money is valuable because

A common measurement in which values are expressed is referred to as a

M1 is comprised of

A credit card is

Reserves equal

If deposits in Bank A total $15 million and the required-reserve ration is 10 percent, then excess reserves equal

Which of the following required-reserve rations would allow a bank the least amount of lanable funds?

5 percent
10 percent
12 percent
15 percent

The banking system increases the money supply by

Suppose that the excess reserves in Bank A increase by $3,000.

If the required-reserve ration is 20 percent, what is the maximum change in demand deposits brought about by the banking system?

If Smith takes $1,000 out of her wallet and deposits it in a bank, what happens?

If Jones takes $1,000 out of his checking account in the bank and puts it in his wallet what happens?

What can a change in the composition of the money supply do?

The simple deposit multiplier is

If there is a change in the composition of the money supply such that there is more currency outside banks and less chekcable deposits, the money supply

If the required-reserve ratio is 20 percent, the simple deposit multiplier is

Bank A has deposits of $10,000 and reserves of $3,600.

If the required-reserve ratio is 20%, the bank has exess reserves of

What is a unit of account?

Money market mutual funds invest in ________

The more new reserves that enter the banking system, ___________

Two people have a _________ _______ ___ _______ if what the first person wants is what the second person has, and what the second person wants is what the first person has.

__________ equal bank deposits at the Feds plus vault cash

Under a _____ ______ banking system, banks create money by holding on reserve only a fraction of the money deposited with them and leding the remainder.

If the required-ration is 10 percent, the simple deposit multiplier is _____

Money has value because of its

____ persons sit on the FOMC

When a check is written on an account at Bank C ans is deposited in Bank D, the reserve account of ________ will fall while reserves of the entire banking system _______

Suppose the public begins to withdraw a lot of currency from the banking system. The Fed could offset the effect on the money supply by

A bank is less likely to borrow reserves from the Fed when the _________ rises relative to the ________

An open market purchase occurs when

The Fed

The Fed bagan operation in

If the Fed purchases government securities from a commercial bank, what will happen?

The Fed considers the ability of a bank to borrow from it a

Open market sales ________

The _________________ is composed of the members of the Board Governors, among others

Open market purchases ___________

A _________ in the discount rate will lower the money supply and a _________ in the required-reserve ratio will raise the money supply

The interest rate that one bank charges another bank is called the ____________

The president of the Federal Reserve Bank of __________ is always a member of the FOMC

An ________ _______ ________ occurs when the Fed buys government securities from a bank.

If one bank borrows from another bank, the money supply will _______ _______