The estimated regression equation is Y = 10 + 2.5X, if X =0 than the predicted value of Y is equal to: A) 12.5 B) 10 C) 2.5 D) 7.5 ANSWER B
Date: September 10th, 2020
Briefly discuss the relationship between leakages and the size of the multiplier. What will be an ideal response? ANSWER The fewer leakages out of the circular flow will increase the size of the multiplier. Thus, if the marginal propensities to consume and invest increase or the marginal propensity to import decreases, the slope of […]
Date: September 10th, 2020
A decrease in the riskiness of corporate bonds will ________ the price of corporate bonds and ________ the price of Treasury bonds, everything else held constant. A) increase; increase B) reduce; reduce C) reduce; increase D) increase; reduce ANSWER D
Date: September 10th, 2020
Assume that in an effort to help consumers, the government decides to reduce the amount of taxes it imposes on sellers of gasoline, that is, sellers are required to pay the government a smaller fee for each gallon of gas they sell. In the market for gas, this would have the effect of causing an […]
Date: September 10th, 2020
A continuing increase in the growth of the money supply is likely followed by A) a recession. B) a depression. C) an increase in the price level. D) no change in the economy. ANSWER C
Date: September 10th, 2020
In the foreign exchange market, the quantity supplied of dollars is 300 whereas the quantity demanded of dollars is 500 results in a: A) balance of payments surplus of 200. B) balance of payments deficit of 200. C) balance of payments surplus of -200. D) balance of payments deficit of -200. ANSWER A
Date: September 10th, 2020
Applying a uniform markup to each of a firm’s products is less profitable than varying the markup based on the elasticity of demand because the latter is able to exploit the sensitivity of quantity demanded to a change price. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Evidence from business cycle fluctuations in the United States indicates that A) a negative relationship between money growth and general economic activity exists. B) recessions are usually preceded by declines in bond prices. C) recessions are usually preceded by dollar depreciation. D) recessions are usually preceded by a decline in the growth rate of money. […]
Date: September 10th, 2020
Gold certificates, special drawing rights, the reserve position of the IMF, and the holdings of foreign currencies represent: A) physical assets. B) reserve assets. C) monetary assets. D) none of the above. ANSWER B
Date: September 10th, 2020
Assume at the firm’s profit-maximizing level of output P = AVC. In this case, the firm will be: A) earning a positive economic profit. B) earning economic profit = 0. C) incurring an economic loss. D) breaking even. ANSWER C
Date: September 10th, 2020
