The Ricardian equivalence implies that A) the level of government spending has no impact. B) the level of taxes has no impact. C) the distribution of government expenses though time has no impact. D) the distribution of taxes through time has no impact. ANSWER D
Date: September 10th, 2020
There is a double coincidence of wants when A) person 1 has what person 2 wants, who in turn wants what person 3 has. B) person 1 has what person 2 wants, and person 2 has money. C) person 1 has what person 2 wants, and person 2 has what person 1 wants. D) person […]
Date: September 10th, 2020
A consumer is said to be indifferent between two consumption bundles A) when the consumer doesn’t care about his or her consumption bundle. B) when the two bundles provide equal amounts of utility. C) when the consumer chooses the bundles equally often. D) when the consumer is indecisive. ANSWER B
Date: September 10th, 2020
Which of the following properties must a good have to be used as money? A) It should be a durable good. B) It should be issued by a government of central bank. C) It should have intrinsic value. D) It should be shiny. ANSWER A
Date: September 10th, 2020
The preferences of the representative consumer over consumption and leisure are represented by use of a A) production function. B) utility function. C) benefit function. D) preference function. ANSWER B
Date: September 10th, 2020
M1 differs from M2 because ________. A) M2 includes components that are less liquid than any component of M1 B) M1 does not include savings deposits and M2 does C) M1 is included in M2 but M2 has more components D) all of the above E) none of the above ANSWER D
Date: September 10th, 2020
If government spending is held constant and Ricardian equivalence holds, A) an increase in the government budget deficit is always matched by a reduction in private savings. B) an increase in government savings is always matched by an increase in the government budget deficit. C) an increase in government savings is always matched by an […]
Date: September 10th, 2020
Most likely, the stock market crash in 1929 was triggered by ________. A) an autonomous tightening of monetary policy B) an unexpected increase in tax rates C) the rise of fascist political parties in Europe D) a decline in consumer spending ANSWER A
Date: September 10th, 2020
We assume that the representative consumer’s preferences exhibit the properties that A) they evolve over time and that more is always preferred to less. B) more is preferred to less and that the consumer prefers diversity. C) the consumer likes diversity and that more is sometimes preferred to less. D) more is sometimes preferred to […]
Date: September 10th, 2020
President Franklin Delano Roosevelt declared a bank holiday, closing all U.S. banks in ________. A) July 1776 B) October 1929 C) March 1933 D) September 2001 ANSWER C
Date: September 10th, 2020
