Which of the following is a way to obtain endogenous growth: A) inflation. B) human capital accumulation. C) physical capital accumulation. D) population growth. ANSWER B
Date: September 10th, 2020
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
The collapse of Enron Corporation is a reminder of the importance of ________. A) moral hazard B) government-directed credit C) energy trading D) transparency ANSWER D
Date: September 10th, 2020
The collapse of one bank might lead easily to the failure of several others, because ________. A) depositors cannot trust each other to keep their money in the bank B) deposit insurance renders all banks equally fragile C) no bank can survive when its competitors cease to operate D) government regulators will step in to […]
Date: September 10th, 2020
Four reasons for firms to hold inventories are given in the text. For each reason, indicate briefly whether and how it helps to explain the high volatility of inventory investment. What will be an ideal response? ANSWER The role of inventories as a factor of production and as work in process does not vary […]
Date: September 10th, 2020
Positive correlation between x and y implies that A) when x is high, y is high. B) when x is high, y is low. C) when x is zero, y is positive. D) x and y are positively unrelated. ANSWER A
Date: September 10th, 2020
If there is a decline in world autonomous consumption ________. A) the domestic real interest rate would fall B) domestic investment would rise C) net exports would fall D) all of the above E) none of the above ANSWER D
Date: September 10th, 2020
The idea that contact with others with high levels of human capital increases ones own human capital is called human capital A) contagion. B) externality. C) transference. D) convergence. ANSWER B
Date: September 10th, 2020
