For a borrower in a (c,c’) graph, the optimal consumption bundle is A) to the left of the endowment point. B) to the right of the endowment point. C) on the endowment point. D) dependent on other factors. ANSWER B
Date: September 10th, 2020
Prior to World War II, in the United States, financial crises occurred every ________ years or so. A) twenty B) seven C) fifty D) three ANSWER A
Date: September 10th, 2020
For the period 1947-2012, employment in the United States was A) procyclical and leading. B) procyclical and lagging. C) countercyclical and leading. D) countercyclical and lagging. ANSWER B
Date: September 10th, 2020
As income rises ________. A) the number of transactions households and firms undertake should increase B) wealth also rises C) demand for real money balances should increase D) all of the above E) none of the above ANSWER D
Date: September 10th, 2020
In the monetary small open-economy model with a fixed exchange rate, the domestic A) government loses control over the level of domestic government spending. B) government loses control over the level of domestic taxes. C) government loses control over the level of domestic government spending and domestic taxes. D) central bank loses control over the […]
Date: September 10th, 2020
For a lender in a (c,c’) graph, the optimal consumption bundle is A) to the left of the endowment point. B) to the right of the endowment point. C) on the endowment point. D) dependent on other factors. ANSWER A
Date: September 10th, 2020
A consumer is a borrower if A) optimum current consumption is less than current disposable income. B) optimum current consumption is greater than current disposable income. C) future disposable income is greater than current disposable income. D) the consumer’s indifference curves are relatively steep. ANSWER B
Date: September 10th, 2020
The weight of empirical evidence suggests that in the United States, the real wage rate is A) acyclical. B) bicyclical. C) procyclical. D) countercyclical. ANSWER C
Date: September 10th, 2020
As the nominal interest rate increases ________. A) it becomes more costly to hold money instead of bonds B) the quantity of money demanded falls C) the opportunity cost of holding money rises D) all of the above E) none of the above ANSWER D
Date: September 10th, 2020
For a household in a (c,c’) graph, the optimal consumption bundle is A) to the left of the endowment point. B) to the right of the endowment point. C) on the endowment point. D) dependent on other factors. ANSWER D
Date: September 10th, 2020
