A decrease in the real money supply can result from: A) increase in the nominal money supply or an increase in the price level. B) increase in the nominal money supply or a decrease in the price level. C) decrease in the nominal money supply or an increase in the price level. D) decrease in […]
Date: September 10th, 2020
Assume the elasticity of of supply for a particular good has been estimated to equal 1.8. In this case, a 10 percent increase in product price would cause the quantity supplied to: A) decrease by 1.8 percent. B) increase by 1.8 percent. C) decrease by 18 percent. D) increase by 18 percent. ANSWER D
Date: September 10th, 2020
The term “fixed input” refers to: A) inputs to production that do not vary with respect to quality. B) inputs to production that do not vary in price. C) inputs to production that yield a constant or “fixed” marginal product. D) inputs to production, the quantity of which cannot be varied in the short run. […]
Date: September 10th, 2020
In the context of a production function, the remote order takers in the fast food industry would be classified as: A) a fixed input. B) a marginal input. C) a variable input. D) an inframarginal input. ANSWER C
Date: September 10th, 2020
An economy with only a domestic sector is called: A) a mixed economy. B) an open economy. C) a closed economy. D) a command economy. ANSWER C
Date: September 10th, 2020
Macroprudential supervision policies try to prevent a leverage cycle by changing capital requirements so that they ________ during an expansion and ________ during a downturn. A) increase; decrease B) increase; increase C) decrease; increase D) decrease; decrease ANSWER A
Date: September 10th, 2020
In 1997, the Thai government was unable to maintain its exchange rate given the amount of international reserves. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
An economy with both a private and public sector is called: A) a mixed economy. B) a private economy. C) a command economy. D) none of the above. ANSWER A
Date: September 10th, 2020
An important characteristic of the modern payments system has been the rapidly increasing use of A) checks and decreasing use of currency. B) electronic fund transfers. C) commodity monies. D) fiat money. ANSWER B
Date: September 10th, 2020
The spread between the interest rates on Baa corporate bonds and U.S. government bonds is very large during the Great Depression years 1930-1933. Explain this difference using the bond supply and demand analysis. What will be an ideal response? ANSWER During the Great Depression many businesses failed. The default risk for the corporate bond […]
Date: September 10th, 2020
