When the government “services the debt,”

please help me. i really need helpQUESTION 1When the government “services the debt,” it is:A.replacing matured debt with new issues.B.increasing the level of debt.C.paying interest on the existing debt.D.decreasing the level of debt.4 points QUESTION 2The Fed’s open market ________ of bonds leads to ________ interest rates.A.sale; higherB.sale; lowerC.purchase; lowerD.both A and C4 points QUESTION 3The largest single component of M2 isA.demand deposits.B.savings deposits.C.money market mutual funds.D.currency held by the public.4 points QUESTION 4If GDP is ________ potential output, the economy is in a ________ and prices and wages will tend to decrease.A.below; recessionB.below; boomC.above; recessionD.above; boom4 points QUESTION 5Which of the following is not included in M1?A.deposits in checking accountsB.currency held by the publicC.deposits in checking accounts that pay interestD.none of the above4 points QUESTION 6Examples of money are:A.a checkB.a dollar bill.C.a traveler’s check.D.all of the above4 points QUESTION 7Loans are examples of a bank’s:A.assets.B.liabilities.C.net worth.D.balance sheet.4 points QUESTION 8If the unemployment rate is above the natural rate, then GDP is:A.equal to potential output.B.below potential output.C.above potential output.D.indeterminate.4 points QUESTION 9If the Fed wished to decrease interest rates, it could:A.decrease the reserve requirement or conduct an open market saleB.decrease the reserve requirement or conduct an open market purchase.C.increase the reserve requirement or conduct an open market sale.D.increase the reserve requirement or conduct an open market purchase.4 points QUESTION 10Inside lags are:A.longer for fiscal policy than for monetary policy.B.longer for monetary policy than for fiscal policy.C.the same for fiscal policy and monetary policy.D.more variable for monetary policy than for fiscal policy.4 points QUESTION 11The supply of money in the economy is determined primarily byA.decisions made by the Federal Reserve and the U.S. Treasury.B.the actions of the Federal Reserve and the banking system.C.consumers and the banking system.D.the demand for money in the economy.4 points QUESTION 12An open market sale by the Fed:A.increases the total amount of reserves in the banking system.B.causes the reserve requirement to fall.C.does not change the total amount of reserves in the banking system.D.decreases the total amount of reserves in the banking system.4 points QUESTION 13In the short run when prices don’t have enough time to change, the Federal Reserve:A.can influence the level of interest rates in the economy.B.can influence the level of interest rates in the economy but generally will not because it would be destabilizing.C.cannot influence the level of interest rates in the economy.D.can only affect the amount of money in the economy.4 points QUESTION 14The one organization that has the power to change the total amount of reserves in the banking system is the:A.Congress.B.Executive Branch of the Federal Government.C.Federal Reserve System.D.U.S. Treasury.4 points QUESTION 15The real rate of interest is defined as theA.expected inflation rate minus the nominal interest rate.B.expected inflation rate plus the nominal interest rate.C.nominal interest rate minus the expected inflation rate.D.nominal inflation rate plus the expected inflation rate.4 points QUESTION 16If there was a federal budget surplus it would make it possible to:A.increase spending on priorities.B.decrease taxes in order to improve the equity and efficiency of the tax system.C.reduce the national debt.D.any of the above4 points QUESTION 17If the Fed wished to decrease GDP, it could:A.increase the reserve requirement or conduct an open market sale.B.increase the reserve requirement or conduct an open market purchase.C.decrease the reserve requirement or conduct an open market purchase.D.decrease the reserve requirement or conduct an open market sale.4 points QUESTION 18In the long run, a decrease in the money supply:A.increases interest rates, decreases investment, and decreases output.B.decreases interest rates, decreases investment, and decreases output.C.increases interest rates, increases investment, and decreases output.D.has no effect on interest rates, investment, or output.4 points QUESTION 19Which of the following is a burden of the national debt?A.A large debt increases the amount of capital, thereby increasing future incomes.B.Future generations will have to pay higher taxes to finance the national debt.C.The current generation pays a higher level of taxes.D.The current generation receives a higher level of government services.4 points QUESTION 20Suppose GDP exceeds the level of potential output. We would expect to see:A.high unemployment, falling wages, and falling prices.B.low unemployment, rising wages, and rising prices.C.high unemployment, rising wages, and rising prices.D.low unemployment, rising wages, and falling prices.4 points QUESTION 21A deficit is defined as:A.the excess of total revenues over total expenditures.B.government spending plus transfer payments.C.the excess of total expenditures over total revenues.D.the sum of all past borrowing by the government.4 points QUESTION 22Keynes expressed doubts that that the economy would:A.ever move away from full-employment.B.recover from a major recession without active policy.C.ever return to full-employment.D.recover from the effects of higher prices.4 points QUESTION 23The economics of the long run is:A.cyclical economics.B.classical economics.C.Keynesian economics.D.all of the above4 points QUESTION 24The U.S. savings rate is:A.low.B.higher than that of most major countries.C.rapidly increasing.D.zero.4 points QUESTION 25An increase in the discount rate:A.signals the Fed’s desire to increase the money supply.B.reduces the cost of reserves borrowed from the Fed.C.increases the cost of reserves borrowed from the Fed.D.signals the Fed’s desire to lend increased reserves to banks.