Prices are regarded as sticky in ________. A) new Keynesian and traditional Keynesian theory B) real business cycle and new Keynesian theory C) real business cycle and traditional Keynesian theory D) traditional Keynesian, new Keynesian and real business cycle theory ANSWER A
Date: September 10th, 2020
When a macroeconomic aggregate is procyclical A) it grows faster than GDP. B) its deviations from trend generally change before the deviations from trend in GDP do. C) its deviations from trend generally change more that the deviations from trend in GDP. D) its deviations from trend are more often of the same sign as […]
Date: September 10th, 2020
Purchasing power parity may not hold in practice due to all of the following except A) transportation costs. B) cross-country differences in environmental regulations. C) trade barriers like tariffs and quotas. D) the existence of non-traded goods. ANSWER B
Date: September 10th, 2020
The U.S. Securities and Exchange Commission ________. A) oversees lending policies at commercial banks B) directs credit to underserved segments of the financial sector C) promotes transparency in direct finance transactions D) advises households and businesses on the best companies in which to invest ANSWER C
Date: September 10th, 2020
An improvement in school quality translates into an increase in which model parameter? A) H B) z C) b D) 1-u ANSWER C
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
