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 […]
Date: September 10th, 2020
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
Date: September 10th, 2020
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
Date: September 10th, 2020
Money ________ transaction costs, allowing people to specialize in what they do best. A) reduces B) increases C) enhances D) eliminates ANSWER A
Date: September 10th, 2020
Under a fixed exchange rate system, a balance of payments deficit may: A) decrease the country’s money supply if there is a non-sterilized central bank intervention. B) decrease the country’s money supply if there is a sterilized central bank intervention. C) increase the country’s money supply if there is a non-sterilized central bank intervention. D) […]
Date: September 10th, 2020
In the case of a perfectly competitive firm, the optimal markup over marginal cost is 0 percent. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
The function of money that enables money to be used for future purchases is called: A) medium of exchange. B) store of value. C) unit of account. D) measure of power. ANSWER B
Date: September 10th, 2020
The function of money that enables individuals to exchange goods and services in a common unit of account is called: A) medium of exchange. B) store of value. C) unit of account. D) measure of power. ANSWER A
Date: September 10th, 2020
If the prices would have been much higher ten years ago for the items the average consumer purchased last month, then one can likely conclude that A) the aggregate price level has declined during this ten-year period. B) the average inflation rate for this ten-year period has been positive. C) the average rate of money […]
Date: September 10th, 2020
Widgets R Us, which is a price-taking firm, is currently producing 250 units of output. The market price is $3 per unit, the marginal cost of the 250th unit is $2.75, average total cost is $3.50 per unit, and average variable cost is $2.50 per unit. What advice should you give Widgets R Us? A) […]
Date: September 10th, 2020
