If the stock market behaves according to the efficient market hypothesis, then a. investment in stocks cannot be profitable. b. future changes in stock movements are completely predictable. c. current stock prices reflect all currently available information. d. both b and c. e. all of the above. ANSWER C
Date: September 10th, 2020
In the Keynesian theory of money demand, a. the velocity of money is constant. b. the marginal propensity to hold money is constant. c. money is held in part because it is an asset. d. interest rates are fixed. e. none of the above. ANSWER C
Date: September 10th, 2020
Technological change that increases the marginal productivity of labor in the classical model would cause a. labor demand, output and the price level to rise. b. labor demand to fall, the price level to fall, and output to rise. d. labor demand, output and employment to rise. c. output to rise but labor demand to […]
Date: September 10th, 2020
The most important determinant of any multiplier in the Keynesian model is a. the level of planned investment. b. the level of unemployment. c. the marginal propensity to consume. d. the level of excess demand. ANSWER C
Date: September 10th, 2020
A production function describes the A) technological possibilities for converting factor inputs into outputs. B) intellectual possibilities for converting factor inputs into outputs. C) amount of resources available to the representative firm. D) actual process of converting factor inputs into outputs. ANSWER A
Date: September 10th, 2020
According to Figure 5.1, the real interest rate is relatively low in ________. A) Brazil B) Turkey C) Argentina D) Japan E) Indonesia ANSWER B
Date: September 10th, 2020
Regulatory policy used to affect credit markets is known as ________. A) fiscal restraint B) monetary policy C) Bierstadt relaxation D) macroprudential regulation ANSWER D
Date: September 10th, 2020
The demand for current consumption, as plotted against the interest rate, shifts to the right due to all of the following except A) a decrease in current taxes. B) a increase in future taxes. C) an increase in current income. D) an increase in future income. ANSWER B
Date: September 10th, 2020
In the base year, the relationship between nominal and real GDP is a. uncertain. b. one of equality. c. real GDP is higher. d. nominal GDP is higher. ANSWER B
Date: September 10th, 2020
In the new classical view, an anticipated decrease in government spending would be expected to a. lower output and the price level. b. lower output but leave the price level unchanged. c. leave output unchanged and raise the price level. d. leave output unchanged and lower the price level. e. leave both output and the […]
Date: September 10th, 2020
