AP Macroeconomics Practice Test 17

Test Information

Question 12 questions

Time 14 minutes

See All test questions

1. Suppose today's headline is that private investment has decreased as a result of an action by the Federal Reserve. Which of the following choices is the most likely cause?

2. If $1,000 is deposited into a checking account and excess reserves increase by $700, the reserve ratio must be:

3. Suppose a nation is experiencing an annual budget surplus and uses some of this surplus to pay down part of the national debt. One potential side effect of this policy would be

4. Which of the following best describes a key difference between the short-run and long-run aggregate supply curve?

5. The "crowding-out" effect refers to which of the following?

6. Which of the following is a predictable consequence of import quotas?

7. If the Federal Reserve was concerned about the "crowding-out" effect, they could engage in

8. Which of the following would likely contribute to faster rates of economic growth?

9. A nation that must consistently borrow to cover annual budget deficits risks

10. Economic growth is best described as

11. Which of the following is true of automatic fiscal policy stabilizers?

12. Which of the following is an example of expansionary monetary policy for the Federal Reserve?