.18..objective.

Question 1 Injections: a) Decrease aggregate demand b) Always equal savings c) Always equal national income d) Include investment and export spending Question 2 An increase in national income is: a) Likely to increase exports b) Likely to decrease savings c) Likely to decrease investment d) Likely to increase spending on imports Question 3 An increase in national income is likely to: a) Decrease tax receipts b) Worsen the trade position c) Automatically cause an increase in government spending d) Cause an increase in injections into the economy Question 4 A significant increase in the governmentbudget deficit is likely to: a) Reduce injections into the economy b) Reduce national income c) Move the economy away from full employment d) Boost aggregate demand Question 5 If injections are greater than withdrawals: a) National income will increase b) National income will decrease c) National income will stay in equilibrium d) Prices will fall Question 6 Injections: a) Are assumed to be exogeneous (independent of national income) b) Are assumed to be a function of national income c) Decrease aggregate demand d) Decrease the investment into an economy Question 7 For equilibrium in an open four sector economy: a) Actual injections = actual withdrawals b) Planned injections = planned withdrawals c) Savings = investment d) Government spending = tax revenue Question 8 A reflationary policy could include: a) decreasing injections b) increasing taxation rates c) increasing interest rates d) increasing government spending Question 9 A reflationary (expansionist) policy: a) Increases aggregate supply b) Increases aggregate demand c) Decreases the price level d) Increases full employment Question 10 Which of the following is an injection into the economy? a) Investment b) Savings c) Taxation d) Import spending