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  1. AP Macroeconomics
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Financial Sector

Question 1
college-boardMacroeconomicsAPExam Style
1 mark

If the government wants to stimulate economic growth during a recession, which fiscal policy should it use?

Question 2
college-boardMacroeconomicsAPExam Style
1 mark

How does an open market purchase by the Federal Reserve affect the supply of money?

Question 3
college-boardMacroeconomicsAPExam Style
1 mark

What does the nominal interest rate represent?

Question 4
college-boardMacroeconomicsAPExam Style
1 mark

How does an increase in inflation affect the real value of money saved in a bank account with a fixed nominal interest rate?

Question 5
college-boardMacroeconomicsAPExam Style
1 mark

What type of fiscal policy is used to combat inflation?

Question 6
college-boardMacroeconomicsAPExam Style
1 mark

If the nominal interest rate is 5% and the inflation rate is 2%, what is the real interest rate?

Question 7
college-boardMacroeconomicsAPExam Style
1 mark

If the nominal interest rate in an economy is 5% and the inflation rate is 2%, what is the real interest rate?

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Question 8
college-boardMacroeconomicsAPExam Style
1 mark

What is most likely to happen if a nation's central bank decides to raise interest rates significantly above those of other countries?

Question 9
college-boardMacroeconomicsAPExam Style
1 mark

When economists talk about "real" variables, they mean values that have been adjusted to remove which factor?

Question 10
college-boardMacroeconomicsAPExam Style
1 mark

What effect does a depreciation of a country’s exchange rate have on its exports and imports?