Economics > QUESTIONS & ANSWERS > ECON 2305/ECON2305 - EXAM 5 LATEST 2021 (100% CORRECT) (All)
ECON 2305/ECON2305 - EXAM 5 LATEST 2021 (100% CORRECT)
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1. If the government were to double taxes on people who earn more than $1 million per year, the deficit would disappear. a. True b. False 2. Refer to this graph. Which one of the following shocks ... could have caused this to happen? a. an increase in marginal tax rates b. an increase in the foreign exchange value of the dollar c. an increase in government spending d. an increase in wage rates or other resource costs 3. Money creates wealth. a. True b. False //See the video "How the Economy Really Works." GrowEconomy, Dec 5, 2011. 4. If people are generally willing to accept dollar bills in exchange for goods and services, dollar bills are being used as a a. store of value b. unit of accounting c. standard of deferred value d. medium of exchange //Watch this video: Clifford, Jacob. "Macro 4.2 - Functions of Money." ACDCLeadership, Dec 30, 2013. 5. If the economy develops an inflationary gap, an appropriate action would be for the Federal Reserve to a. sell government securities (or other assets) b. buy government securities (or other assets) 6. When the federal debt (also called the public debt) increases, which of the following will happen, ceteris paribus? [Show More]
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