A larger marginal propensity to import will make the slope of the aggregate expenditure function flatter. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
The currency exchange rate is the rate at which one nation’s currency can be exchanged for another. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Cross-sectional data observed at several points in time is known as: A) time series data. B) panel data. C) experimental data. D) none of the above. ANSWER B
Date: September 10th, 2020
Holding everything else constant, a country’s imports will decrease if the: A) country’s currency appreciates. B) country’s currency depreciates. C) country’s currency is revalued. D) none of the above. ANSWER B
Date: September 10th, 2020
Data collected on a sample of individuals with different characteristics at a specific point in time are called: A) cross-section data. B) time series data. C) panel data. D) none of the above. ANSWER A
Date: September 10th, 2020
A financial crisis is A) not possible in the modern financial environment. B) a major disruption in the financial markets. C) a feature of developing economies only. D) typically followed by an economic boom. ANSWER B
Date: September 10th, 2020
As described in the text, which of the following statements best describes the strategy of many potato growers since 2005? A) Growers have worked together to reduce supply and stabilize demand. As a result, equilibrium price has been propped up and allowed farmers to earn what they consider a decent profit. B) Growers have continued […]
Date: September 10th, 2020
U.S. import spending is not affected by U.S. real income but is influenced by the economic activity of its major trading partners and the exchange rate, hence import spending is taken as autonomous. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
The difference between the total willingness to pay for a good and the amount actually spent measures: A) the total benefits from consuming the good. B) the net gain from the production and consumption of the good. C) the amount by which producers are better off, i.e., producers’ surplus. D) the amount by which consumers […]
Date: September 10th, 2020
Assume goods X and Y are substitutes. An increase in the price of X would cause the demand for Y to increase. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
