In each question at least one answer is correct

1. Consumer expenditure includes a purchase of:

a) foodstuffs,
b) an apartment in a new building;
c) a used car;
d) treasury bonds.
2. Consumption expenditure:
a) always equals the household income;
b) can be lower than the total household income;
c) can exceed the household income;
d) depends positively on the household income.
3. Disposable income is:
a) gross income from labor and capital augmented by transfers and reduced by taxes;
b) net labor income augmented by rents, interest and profits;
c) lower than gross income;
d) higher than the national income.
4. Investment expenditure:
a) depends positively on income and negatively on the interest rate;
b) depends negatively on income and positively on the interest rate;
c) does not depend on income;
d) does not depend on the interest rate.
5. Government spending:
a) depends positively on income;
b) depends negatively on the interest rate;
c) does not depend on income;
d) equals tax revenue minus transfers.
6. Money demand in nominal terms depends:
a) positively on income and price level;
b) negatively on the interest rate;
c) positively on income and the interest rate;
d) negatively on income and price level.
7. To increase the money supply the central bank should:
a) raise the reserve rate;
b) lower the discount rate;
c) sell bonds in the open market;
d) buy bonds in the open market.
8. Increased money supply in the short run leads to:
a) an increase in the market interest rate and prices;
b) a fall of the interest rate and a rise of money demand;
c) a rise of the interest rate and of money demand;
d) a higher interest rate and lower prices.
9. A fall of the interest rate leads to:
a) higher consumption and investment;
b) higher global demand and lower output;
c) lower household wealth;
d) lower costs of credit.