Q.1.1 In the circular flow of income and spending: (1) Investment results in a decrease in the volume of the income flow; (2) Savings result in a decrease in the volume of the income flow; (3) Taxes result in an increase in the volume of the income flow; (4) Imports result in an increase in the volume of the income flow. Q.1.2 Money as a medium of exchange consists of: (1) Demand deposits; (2) Debit cards; (3) Credit cards; (4) Cheques. Q.1.3 An increase in the budget deficit is the result of: (1) Expansionary monetary policy; (2) Contractionary monetary policy; (3) Expansionary fiscal policy; (4) Contractionary fiscal policy.

Q.1.1 In the circular flow of income and spending: (1) Investment results in a decrease in the volume of the income flow; (2) Savings result in a decrease in the volume of the income flow; (3) Taxes result in an increase in the volume of the income flow; (4) Imports result in an increase in the volume of the income flow. Q.1.2 Money as a medium of exchange consists of: (1) Demand deposits; (2) Debit cards; (3) Credit cards; (4) Cheques. Q.1.3 An increase in the budget deficit is the result of: (1) Expansionary monetary policy; (2) Contractionary monetary policy; (3) Expansionary fiscal policy; (4) Contractionary fiscal policy.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Open-economy Macroeconomics: Basic Concepts

Section: Chapter Questions

Problem 1QR

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