Consider the above figure. Autonomous consumption, in this scenario, is equal to A) $30. B) $80. C) $60. D) $40. ANSWER D
Date: September 2nd, 2020
Which of the following factors could cause the economy to experience supply-side inflation? A) increased security about jobs and future income B) Develop new technology to increase productivity. C) government laws which say that the average work week must be reduced by one hour every year D) Increase the number of immigrants allowed into the […]
Date: September 2nd, 2020
Which of the following correctly describes a way in which deficit spending can impose a burden on future generations? I. Failure to allocate deficit spending to uses that boost future real Gross Domestic Product (GDP) will require taxing future generations at a higher rate to repay the resulting higher public debt. II. Government deficits that […]
Date: September 2nd, 2020
If the quantity of bank reserves held at the Fed increases, ________. A) the real interest rate increases B) bank deposits decrease C) the number of loans issued by banks decrease D) inflation increases ANSWER D
Date: September 2nd, 2020
Demand-side inflation occurs when A) long-run aggregate demand rises faster than short-run aggregate supply. B) aggregate demand falls more rapidly than aggregate supply. C) increases in aggregate supply outstrip increases in aggregate demand. D) increases in aggregate demand are not matched by increases in aggregate supply. ANSWER D
Date: September 2nd, 2020
[et_pb_section admin_label=”section”] [et_pb_row admin_label=”row”] [et_pb_column type=”4_4″][et_pb_text admin_label=”Text”]________ will lead to an increase in the gross domestic product of a country, all other variables remaining constant. A) An increase in exports B) An increase in imports C) A fall in the expenditure incurred by the government D) A fall in the expenditure on investment goods […]
Date: September 2nd, 2020
If the net public debt remains unchanged during a given period, but the gross public debt increases, then which of the following statements must be correct? A) Government interagency borrowing must have decreased during the period. B) Foreign ownership of U.S. Treasury securities must have fallen during the period. C) Government interagency borrowing must have […]
Date: September 2nd, 2020
What is meant by the term “rate of interest”? If the nominal rate of interest in an economy is 6%, and the rate of inflation in the economy is 4%, what is the real rate of interest in the economy? What will be an ideal response? ANSWER The rate of interest is the additional […]
Date: September 2nd, 2020
Assuming that Yd = $20,000 and C = $22,000, we would find that the average propensity to consume would be equal to A) 0.8. B) 1.8. C) 1.1. D) 0.9. ANSWER C
Date: September 2nd, 2020
Refer to the scenario above. If both economies have the same depreciation rate, then which of the following statements will be true? A) Economy A will have a greater capital stock and a lower GDP than economy B. B) Economy A will have a greater capital stock and GDP than economy B. C) Economy A […]
Date: September 2nd, 2020
