Which of the following will not cause the aggregate supply curve to fall?
a. A decrease in the nation's average price level (i.e., the implicit price index).
b. An increase in input prices.
c. A decrease in the value of the domestic currency.
d. Natural disasters.
e. None of these answers is correct.
Question 2 - Which of the following was not a major area addressed by the Dodd-Frank Bill (i.e., Wall Street Reform and Consumer Protection Act of 2010).
a. Ensuring that investment banks and others had skin in the game by restricting their ability to securitize 100 of their mortgage-backed loans.
b. Reducing systemic threats to the U.S. financial system.
c. Solving the too big to fail problem in the U.S. financial system.
d. Improving credit rating agency performance and accountability.
e. All of the above.
Question 3 - Which of the following will not cause the aggregate supply curve to fall?
a. A reduction in a nation's level of productivity.
b. A decrease in the nation's average price level (i.e., the implicit price index).
c. An increase in input prices.
d. A decrease in the value of the domestic currency.
e. Natural disasters.
Question 4 - Which of the following was not a major area addressed by the Dodd-Frank Bill (i.e., Wall Street Reform and Consumer Protection Act of 2010).
a. Reducing systemic threats to the U.S. financial system.
b. Ensuring that credit ratings came from a government agency rather than private credit rating agencies
c. Solving the too big to fail problem in the U.S. financial system.
d.Reducing systemic threats to the U.S. financial system.
Question 5 - If a nation's real risk-free interest rate fell relative to foreign nations, it would cause the value of the domestic currency to _______ and net exports to ________ (fill in the missing blanks)
a. Fall; rise
b. Fall, rise
c. Remain unchanged; rise
d. Rise; fall
e. Remain unchanged; fall
Question 6 - Which of the following was not a major area addressed by the Dodd-Frank Bill (i.e., Wall Street Reform and Consumer Protection Act of 2010).
a. Reducing systemic threats to the U.S. financial system.
b. Improving credit rating agency performance and accountability.
c. Solving the too big to fail problem in the U.S. financial system.
d. All of the above.
Question 7 - If a nation's real interest rate fell relative to foreign nations, it would cause net exports to:
a. Fall.
b. Rise.
c. Remain unchanged.
d. It could increase or decrease net exports, depending on the elasticity of demand for foreign exchange.
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