Refer to Scenario 2. Diminishing marginal returns starts to occur between units: A) 2 and 3. B) 3 and 4. C) 4 and 5. D) 5 and 6. ANSWER C
Date: September 10th, 2020
The curve that shows alternative combinations of the price level and real income that result in equilibrium in both the real goods and the money markets is called the: A) aggregate demand curve. B) short-run aggregate supply curve. C) long-run aggregate supply curve. D) none of the above. ANSWER A
Date: September 10th, 2020
Changing consumer taste and preferences, lawsuits, and competitive pressures adversely affect McDonald’s sales. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
The research document given to the Federal Open Market Committee that contains information on the state of the economy in each Federal Reserve district is called the A) beige book. B) green book. C) blue book. D) black book. ANSWER A
Date: September 10th, 2020
A fully amortized loan is another name for A) a simple loan. B) a fixed-payment loan. C) a commercial loan. D) an unsecured loan. ANSWER B
Date: September 10th, 2020
Policies adopted by a country’s central bank that influence interest rates and credit conditions, which in turn influence consumer and business spending are called: A) monetary policy. B) fiscal policy. C) foreign policy. D) exchange rate policy. ANSWER A
Date: September 10th, 2020
Why is the money multiplier smaller than the simple deposit multiplier? What will be an ideal response? ANSWER In the case of the money multiplier, individuals may hold some of their assets in cash rather than depositing them in a checking account and banks may hold excess reserves. The simple deposit multiplier assumes all […]
Date: September 10th, 2020
In 2001-2002, the fast food industry underwent tremendous growth. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
When an investment bank ________ securities, it guarantees a price for a corporation’s securities and then sells them to the public. A) underwrites B) undertakes C) overwrites D) overtakes ANSWER A
Date: September 10th, 2020
The level of aggregate output and income where there is a balance between spending and production decisions and where the economy moves toward is called: A) disequilibrium level of output and income. B) equilibrium level of output and income. C) disequilibrium level of employment. D) none of the above. ANSWER B
Date: September 10th, 2020
