Macro Economics MCQ

Multiple Choice— Select the option that best completes the sentence or provides the answer to the question.
  1. A decrease in the money supply is most likely to

  2. When the price level increases it causes households and business firms to try to

  3. When metal coins, such as gold and silver were used as money, a technique which made them easy to recognize and which did not reduce their value was

  4. The main cause of cyclical unemployment is that

  5. "Foreign exchange" refers to

  6. Publicly subsidized education and retraining schemes are

  7. Which one of the following statements correctly describes the transmission mechanism?

  8. If all the banks in the banking system collectively have $20 million in cash reserves and have a desired reserve ratio of 20 percent, the maximum amount of demand deposits the banking system can support is

  9. One implication of an increase in the cash drain to the public is that the

  10. A rise in the price level, given no change in the supply of money, will