AP Macroeconomics Practice Test 13

Test Information

Question 12 questions

Time 14 minutes

See All test questions

1. Excess reserves in the banking system will increase if

2. If a bank has $1,000 in checking deposits and the bank is required to reserve $250, what is the reserve ratio? How much does the bank have in excess reserves? What is the size of the money multiplier?

3. Suppose the reserve ratio is 10 percent and the Fed buys $1 million in Treasury securities from commercial banks. If money demand is perfectly elastic, which of the following is likely to occur?

4. If the world price of copper exceeds the domestic (U.S.) price of copper, we would expect

5. Suppose the Japanese economy is suffering a prolonged recession. Lower Japanese household incomes will affect U.S. exports to Japan, demand for the dollar, and the value of the dollar relative to the yen in which of the following ways?

EXPORTS TO JAPAN     DEMAND FOR $     VALUE OF $

6. Which of the following is a likely effect of a higher tariff imposed by the United States on imported automobiles?

7. Which of the following statements is true of production possibility curves and trade between nations?

8. A nation is producing at a point inside of its production possibility curve. Which of the following is a possible explanation for this outcome?

9. How would fiscal and monetary policymakers combine spending, tax, and monetary policy to fight a recessionary gap, while avoiding large budget deficits?

SPENDING POLICY     TAX POLICY     MONETARY POLICY

10. Corn is exchanged in a competitive market. Which of the following definitely increases the equilibrium price of corn?

11. An increase in the consumer price index is commonly referred to as

12. Which of the following is characteristic of a centrally planned economic system?