Between 1950 and 1980 in the U.S., interest rates trended upward. During this same time period A) the rate of money growth declined. B) the rate of money growth increased. C) the government budget deficit (expressed as a percentage of GNP) trended downward. D) the aggregate price level declined quite dramatically. ANSWER B
Assume the demand and supply functions for good X can be written as Qd = 1000 – 40Px Qs = -200 + 20Px In this example, equilibrium price is $20 and the equilibrium quantity is 200. Indicate whether the statement is true or false ANSWER TRUE
Conjoint analysis employs an approach to consumer behavior that is similar to the economic indifference curve model. Indicate whether the statement is true or false ANSWER TRUE
Refer to Scenario 1. What is the total sum of squares? A) 3860.8 B) 3718.9 C) 141.9 D) None of the above. ANSWER A
Institutions that accept deposits from individuals and organizations, against which depositors can write checks on demand for their market transactions and that use these deposits to make loans are called: A) depository institutions. B) financial market institutions. C) insurance companies. D) none of the above. ANSWER A
Large denomination time deposits are included in: A) M1. B) M2. C) M3. D) L. ANSWER C
Because unemployment is a macroeconomic topic, an increase in unemployment would not be expected to have any impact on the equilibrium price or quantity in the market for an individual good. Indicate whether the statement is true or false ANSWER FALSE
In a multiple regression problem involving two independent variables, if b1 is computed to be +2.0, it means that: A) the relationship between X1 and Y is significant. B) the estimated value of Y increases by an average of 2 units for each increase of 1 unit of X1, holding X2 constant. C) the estimated […]
There is a ________ association between inflation and the growth rate of money ________. A) positive; demand B) positive; supply C) negative; demand D) negative; supply ANSWER B
The action taken by a country’s central bank to prevent balance of payments policies from influencing the country’s domestic money supply is called a: A) fiscal policy intervention. B) monetary policy intervention. C) sterilized intervention. D) non-sterilized intervention. ANSWER C
