YOU SCORED
{{Score}}/10

The CFA Program represents the industry gold-standard for effective and ethical investment management practices. Click here to learn more about the CFA Program.

Question 1

Sorry, that's incorrect.
The Correct Answer is Remains the same.
With respect to the long-run Phillips curve, if the expected inflation rate increases, the natural unemployment rate most likely:

Question 2

Sorry, that's incorrect.
The Correct Answer is Money targeting rule.
Which of the following monetary policy strategies most likely requires the velocity of circulation of the monetary base to be stable?

Question 3

Sorry, that's incorrect.
The Correct Answer is On the downward-sloping part of the curve.
With respect to the Laffer curve, decreasing a country's tax rate will increase tax revenues if the country's current tax rate lies:

Question 4

Sorry, that's incorrect.
The Correct Answer is Frictional and structural unemployment.
The natural unemployment rate is comprised of:

Question 5

Sorry, that's incorrect.
The Correct Answer is The expected rate of inflation only.
The Fisher effect states that in the long term, changes in the nominal interest rate are the result of changes in:

Question 6

Sorry, that's incorrect.
The Correct Answer is The rate of change in the velocity of circulation is not influenced by the money growth rate.

According to the quantity theory of money, in the long run:

Question 7

Sorry, that's incorrect.
The Correct Answer is 56.

An analyst categorizes eight countries as either developed, emerging, or frontier markets. How many different ways can the countries be classified?

Question 8

Sorry, that's incorrect.
The Correct Answer is Expansionary.

All else being equal, if a government's fiscal policy results in an increase in saving and a decrease in net exports, the policy is best described as:

Question 9

Sorry, that's incorrect.
The Correct Answer is Makes it easier to maintain a tight exchange rate peg.
Imposing capital restrictions most likely:

Question 10

Sorry, that's incorrect.
The Correct Answer is Domestic saving.

The sum of an economy's investment spending, fiscal balance, and trade balance equals the economy's: