The importance of barriers to the adoption of technologies is supported by research by A) P. Romer. B) R. Lucas. C) S. Parente and E. Prescott. D) G. Glomm and B. Ravikumar. ANSWER C
Date: September 10th, 2020
Private disposable income is equal to A) Y + TR + INT – T. B) Y + NFP + TR + INT – T. C) Y – TR – INT + T. D) Y + CA – G. ANSWER B
Date: September 10th, 2020
Ceteris paribus, in a closed economy, if consumers become more pessimistic ________. A) autonomous consumption will fall B) investment will fall C) saving will increase D) all of the above E) none of the above ANSWER D
Date: September 10th, 2020
A rise in the tax rate on businesses leads to ________. A) a decline the desired level of capital and an increase in investment B) a decline in the desired level of capital and a decrease in investment C) an increase in the desired level of capital and a decrease in investment D) an increase […]
Date: September 10th, 2020
A current account deficit is A) good because a country wants to own the others. B) bad because every country should have a surplus. C) good because it allows to smooth consumption. D) it does not matter. ANSWER C
Date: September 10th, 2020
If exchange rates are floating, the Fed increasing its target inflation rate will cause the dollar to ________ relative to other currencies and cause net capital outflows to ________. A) appreciate; increase B) appreciate; decrease C) depreciate; increase D) depreciate; decrease ANSWER C
Date: September 10th, 2020
Refer to Figure 12.5. If exchange rates are floating, the Fed decreasing its target inflation rate would best be represented by a movement from ________ in panel (a) and a corresponding movement from ________ in panel (b). A) point A to point B; point X to point Y B) point C to point A; point […]
Date: September 10th, 2020
Additions to the nation’s capital stock are brought about through A) the current account surplus. B) investment. C) investment and the current account surplus. D) investment and the government budget surplus. ANSWER B
Date: September 10th, 2020
According to real business cycle theory, an increase in financial frictions might lead to ________, if ________. A) a decrease in output; the rise in the credit spread causes a leftward shift of aggregate demand B) a decrease in inflation; the disruption of capital markets results in a leftward shift of long-run aggregate supply C) […]
Date: September 10th, 2020
Ceteris paribus, in a closed economy, if consumers become more optimistic ________. A) autonomous consumption would decrease B) the equilibrium interest rate should increase C) saving should increase D) all of the above E) none of the above ANSWER B
Date: September 10th, 2020
