Q:1-Which of the following is not a part of the business cycle?
Mark one answer:
Expansion
Contraction
Plateau
Trough

Q:6-If the income level in a given economy increases by $100 and spending increases by $80, the marginal propensity to save in that economy is equal to which of the following?
Mark one answer:
0.5
0.8
0.75
0.2

Q:7-At a particular bank, the reserve ratio is 10% and excess reserves are $300. The maximum expansion of the money supply that can be generated by that bank is ________.
Mark one answer:
$3000
$30,000
$300
$30

Q:8-At the beginning of a specified fiscal year, the national debt is equal to $1000. At the end of the fiscal year, the national deficit is equal to $100. The national debt at the end of the fiscal year is equal to ________.
Mark one answer:
$100
$1000
$900
$1100

Q:9-A rightward shift of the aggregate demand curve will necessarily result in which of the following?
Mark one answer:
A decrease in output and an increase in price level
An increase in output and a decrease in price level
An increase in output and an increase in the price level
A decrease in output and a decrease in the price level

Q:10-An increase in the money supply curve would most likely result in which of the following situations?
Mark one answer:
A decrease in the quantity of money available
A decrease in the real interest rate
An increase in the real interest rate
No effect on the real interest rate