Finance based problems - multiple choice

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Reference no: EM1361823

22)
If there is a crisis in morality in which the public uses more cash for illegal transactions, what should the Fed do to keep GDP and employment stable?
a) increase the money supply b) decrease the money supply c) maintain the same money supply
d) money supply and employment are unrelated e) none of the above

23)
If a series of accounting frauds are disclosed and this compromises the integrity of financial information leading to a stock market crash, what should the Fed do to keep GDP and employment stable?
a) increase the money supply b) decrease the money supply c) maintain the same money supply
d) money supply and employment are unrelated e) none of the above

24)
If debit cards become available for use in more stores, what should the Fed do to keep GDP and employment stable?
a) increase the money supply b) decrease the money supply c) maintain the same money supply
d) money supply and employment are unrelated e) none of the above

25)
If new technology permits electronic voting to run more smoothly, what should the Fed do to keep GDP and employment stable?
a) increase the money supply b) decrease the money supply c) maintain the same money supply
d) money supply and employment are unrelated e) none of the above

26)
If war in the Middle East makes oil less secure and more expensive, what should the Fed do to keep GDP and employment stable?
a) increase the money supply b) decrease the money supply c) maintain the same money supply
d) money supply and employment are unrelated e) none of the above

27)
If a hurricane knocks out the electricity in Florida and the Gulf coast, what should the Fed do to keep GDP and employment stable?
a) increase the money supply b) decrease the money supply c) maintain the same money supply
d) money supply and employment are unrelated e) none of the above

28)
If investors in unstable countries look to the US for stability, what should the Fed do to keep GDP and employment stable?
a) increase the money supply b) decrease the money supply c) maintain the same money supply
d) money supply and employment are unrelated e) none of the above

29)
If housing rents and commercial rents fall substantially, what should the Fed do to keep GDP and employment stable?
a) increase the money supply b) decrease the money supply c) maintain the same money supply
d) money supply and employment are unrelated e) none of the above

30)
If rebuilding after a natural disaster causes government spending to increase substantially, what should the Fed do to keep GDP and employment stable?
a) increase the money supply b) decrease the money supply c) maintain the same money supply
d) money supply and employment are unrelated e) none of the above

31)
The DVD technology causes consumers to convert their VHS libraries to discs. What should the Fed do to keep GDP and employment stable?
a) increase the money supply b) decrease the money supply c) maintain the same money supply
d) money supply and employment are unrelated e) none of the above

32)
If Congress raises taxes in an effort to reduce the budget deficit, what should the Fed do to keep GDP and employment stable?
a) increase the money supply b) decrease the money supply c) maintain the same money supply
d) money supply and employment are unrelated e) none of the above

Reference no: EM1361823

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