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Sophia Learning - Macroeconomics - Final Milestone

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Which of the following is true about exchange rates? • They often change as a result of changing economic conditions in one country compared to another. • A country's exchange rate will depend ... on how much supply and demand exist for its currency. • Exchange rates matter when making international purchases or traveling abroad. •  All of the above are true regarding exchange rates. CONCEPT Foreign Exchange and Currency 2 Select the statement below that is true of ONLY price ceilings. • Are binding when they are above equilibrium •  Can create a shortage of product • The market clears, there are no shortages or surpluses • Sophia :: Welcome Page 1 of 12https://capella.sophia.org/spcc/macroeconomics-2/milestone_take_feedbacks/5160679 8/10/2020Your text here 1 The market is allowing for trade to occur between buyers and sellers CONCEPT Binding & Non-Binding Constraints 3 Which statement below about expansionary fiscal policy is true? • It generally has a negative effect on GDP. •  If it is based on a tax cut, it will trigger the multiplier effect. • It could include lowering interest rates. • It could include decreasing the reserve requirement. CONCEPT Expansionary Policy 4 If the reserve requirement for a bank is 25%, $15 in M0 will lead to which of the following amounts of money of M1? •  $45 • $4 • $15 • $60 CONCEPT Reserve Requirement 5 Laura is willing to pay as much as $1,000 for a wedding dress but is happy to find one she likes that costs $300. Select the term below that corresponds to this situation. Sophia :: Welcome Page 2 of 12https://capella.sophia.org/spcc/macroeconomics-2/milestone_take_feedbacks/5160679 8/10/2020 •  Consumer surplus • Equilibrium • Ceteris paribus • Producer surplus CONCEPT Consumer Surplus 6 Private loan seekers getting crowded out of the loan market by the government is a(n) __________. •  criticism of fiscal policy • advantage of fiscal policy • criticism of monetary policy • advantage of monetary policy CONCEPT Pros and Cons of Monetary and Fiscal Policy 7 Which statement below about producer surplus is NOT true? • When producer surplus drops to zero, firms stop producing. •  Producer surplus is basically the same a [Show More]

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