Question 1. Which of the following is not included in gross private domestic investment spending?
- Household spending on durable goods.
- Spending on business inventories.
- Business spending on plant and equipment.
- Household spending on residential construction
- none of the above
- All of the above
Question 2. In the money market, an increase in money demand will:
- result in a leftward shift in the money demand curve increasing interest rates
- result in a rightward shift in the money demand curve increasing interest rates.
- result in a rightward shift in the money demand curve decreasing interest rates.
- result in a leftward shift in the money demand curve decreasing interest rates.
- none of the above
- all of the above
Question 3. A decrease in the reserve requirement would:
- decrease excess reserves and reflect a contractionary monetary policy
- decrease excess reserves and reflect an expansionary monetary policy.
- increase excess reserves and reflect an expansionary monetary policy.
- increase excess reserves and reflect a contractionary monetary policy.
- none of the above
- all of the above