In a closed economy, there should be a close positive relationship between a. budget deficits and interest rates. b. trade deficits and budget deficits. c. savings and investment. d. investment and consumption. e. Both a and c. ANSWER E
Date: September 10th, 2020
Children can be viewed as retirement insurance and thus provide individuals with incentive to create large families. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Economies of scale refer to a. costs rising as the scale of production increases. b. costs falling as the scale of production increases. c. output rising as the level of inputs rises. d. the marginal product of labor diminishes as the quantity of labor increases. ANSWER B
Date: September 10th, 2020
Monetarists maintain that the increase in the money supply can explain the inflation of the 1970s and 1980s when one considers the bonds purchased by the Fed to finance the federal deficits of the period. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
In the neoclassical growth model, an increase in the saving rate will a. increase the long-run equilibrium rate of growth in output. b. reduce the long-run equilibrium rate of growth in output. c. leave the long-run equilibrium rate of growth in output unchanged. d. affect the long-run equilibrium rate of growth in output but the […]
Date: September 10th, 2020
From the late 1860s until 1907 the U.S. averaged a four percent or more increase in the real value of the goods and services produced. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Under perfect capital mobility and a floating exchange rate system, expansionary fiscal policy leads to a. an increase in income and the interest rate. b. no change in the interest rate and a fall in the trade balance. c. no change in the interest rate and a decrease in income. d. an increase in interest […]
Date: September 10th, 2020
In the short run, an increase in the money stock growth rate a. moves the economy up the short-run Phillips curve. b. moves the economy down the short-run Phillips curve. c. shifts the short-run Phillips curve to the right. d. results in a decline in the natural rate of unemployment and a rise in the […]
Date: September 10th, 2020
The percentage of foreign-born people living in the U.S. continued to rise after the Civil War. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Which view of the causes of the Great Depression emphasizes that there is little evidence that the economy was suffering from any real shortage of money; the problems, instead, stemmed from a fall of private consumption and investment spending? (a) The Monetarists’ (b) The Keynesians’ (c) The Austrians’ (d) The International View ANSWER (b)
Date: September 10th, 2020
