If the correlation between GDP and y is 0.55, we say y is A) procyclical. B) acyclical. C) countercyclical. D) tricyclical. ANSWER A
Date: September 10th, 2020
A devaluation of the exchange rate is a policy action that A) increases the real exchange rate. B) decreases the real exchange rate. C) increases the nominal exchange rate. D) decreases the nominal exchange rate. ANSWER C
Date: September 10th, 2020
Which of the following would lead domestic investment to rise? A) an increase in government spending throughout the world B) an increase in world taxes C) an increase in world autonomous consumption D) all of the above E) none of the above ANSWER B
Date: September 10th, 2020
Endogenous growth theory is about A) welfare of indigenous people. B) explaining growth. C) studying education. D) studying fertility choices. ANSWER B
Date: September 10th, 2020
Prudential supervision is, in essence, the monitoring of ________. A) borrowers, to enforce restrictive covenants B) intermediaries, to direct credit to preferred sectors of the economy C) holders of an insurance policy, to discourage excessively risky behaviors D) depositors, to discourage sudden withdrawal of funds ANSWER C
Date: September 10th, 2020
If the correlation between GDP and y is -0.75, we say y is A) procyclical. B) acyclical. C) countercyclical. D) tricyclical. ANSWER C
Date: September 10th, 2020
Credibility is important to successful anti-inflationary policy in ________. A) new Keynesian theory B) traditional Keynesian theory C) real business cycle theory D) post classical theory ANSWER A
Date: September 10th, 2020
A revaluation of the exchange rate is a policy action that A) increases the real exchange rate. B) decreases the real exchange rate. C) increases the nominal exchange rate. D) decreases the nominal exchange rate. ANSWER D
Date: September 10th, 2020
Price flexibility is a key feature of ________. A) traditional Keynesian theory B) new Keynesian theory C) real business cycle theory D) traditional Keynesian, new Keynesian and real business cycle theory ANSWER C
Date: September 10th, 2020
An increase in autonomous spending leads to higher ________. A) inflation B) output C) real interest rate D) all of the above E) none of the above ANSWER B
Date: September 10th, 2020
