In the long run, larger budget deficits lead to ________. A) higher saving levels B) a fall in investment C) lower interest rates D) all of the above E) none of the above ANSWER B
Date: September 10th, 2020
The MP curve may be used to represent ________. A) movements of the real interest rate as a direct policy action of the Federal Reserve B) movements of the real interest rate that are independent of direct Federal Reserve action C) how the real interest rate is related to the inflation rate D) all of […]
Date: September 10th, 2020
Under a fixed exchange rate system, a currency devaluation ________ the nominal exchange rate and will ________ net exports. A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease ANSWER C
Date: September 10th, 2020
Moral hazard and adverse selection are the result of ________. A) prudential supervision B) any and all government policy C) excessive price fluctuations D) asymmetries of information ANSWER D
Date: September 10th, 2020
Consider the two graphs above. Suppose that businesses expect to hire more workers. This would ________ the desired level of the capital stock, as depicted in graph ________. A) increase; B B) increase; A C) decrease; B D) decrease; A ANSWER B
Date: September 10th, 2020
In Dakistan, 3M people work, 0.5M are unemployed and get UI benefits, 0.1M are unemployed without UI benefits and 3M have no intention to work. The unemployment rate is (to the nearest %) A) 7%. B) 9%. C) 14%. D) 17%. ANSWER D
Date: September 10th, 2020
Which of the following is used by lenders to reduce the problems that arise from asymmetries of information? A) patent contracts B) collateral C) decreased interest rates D) restrictive contents ANSWER B
Date: September 10th, 2020
A budget deficit ________. A) may have stimulative effects on economic activity in the short run B) contributes to lower interest rates in the long run C) is likely to increase future productive capacity in the long run D) all of the above E) none of the above ANSWER A
Date: September 10th, 2020
Assume that in an economy with 200M inhabitants, 90M work, 4M are looking for a job, 3M receive unemployment insurance compensation, and 6M receive unemployment insurance compensation and are looking for a job. What is the unemployment rate? A) 13% B) 10% C) 6.5% D) 5% ANSWER B
Date: September 10th, 2020
Consider the two graphs above. Suppose there is an increase in the real interest rate. This would ________ the desired level of the capital stock, as depicted in graph ________. A) increase; B B) increase; A C) decrease; B D) decrease; A ANSWER C
Date: September 10th, 2020
