A lower interest elasticity of investment demand leads to a a. steeper IS curve. b. flatter IS curve. c. steeper LM curve. d. flatter LM curve. ANSWER A
Date: September 10th, 2020
The Solow model implies that continuous growth in productivity at a rate of one percent will result in continuous growth of output per worker at a rate of 1.43%. Thus, if at a point in time output per worker is 270 and productivity rises by one percent, the resulting level of output per worker is […]
Date: September 10th, 2020
If the increase in government expenditures of World War II (1941–45) is matched against the decrease in private investment and consumption during the same period, it was the end of World War II that officially concluded the depression era, not the start of World War II, according to Robert Higgs (2007). Indicate whether the statement […]
Date: September 10th, 2020
Under the U.S. Constitution, each state gave up its right to issue money, borrow, levy taxes and regulate the value of money on behalf of national efforts. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
In the classical model, an increase in saving is assumed to increase a. the demand for loanable funds, which decreases interest rates. b. the supply of loanable funds, which decreases interest rates. c. both the demand for money and loanable funds, which reduces interest rates. d. neither the demand for money nor bonds, leaving interest […]
Date: September 10th, 2020
The long-term pattern of American foreign trade policy from 1789 to 1914 was (a) protectionist at first, becoming more liberal before 1861, then more protectionist again. (b) liberal at first, becoming more protectionist before 1861, then shifting to greater liberalism as the country’s industrialization spread in the later 19th century. (c) free trade after the […]
Date: September 10th, 2020
All economists agree that World War II (1941–45) was responsible for ending the Great Depression. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
The majority of people living in colonial America in 1790 were of African origins. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
The higher the marginal income tax rate, the a. higher the MPC out of disposable income. b. lower the MPC out of disposable income. c. higher the autonomous expenditure multiplier. d. lower the autonomous expenditure multiplier. e. None of the above ANSWER D
Date: September 10th, 2020
Comparing steady states, which of the following is a result of a permanent increase in the saving rate, but is not a consequence of a one-time increase in productivity? A) an increase in consumption per worker B) a decrease in the marginal product of capital C) an increase in output per worker D) an increase […]
Date: September 10th, 2020
