If the nominal interest rate is 8.25% and inflation rate is 3%, the real interest rate is ________. A) 5.25% B) 2.75% C) 1.25% D) 11.25% ANSWER A
Date: September 2nd, 2020
Which of the following is an example of a natural experiment? A) A research on the effectiveness of a new medicine among some voluntary participants B) A study on the benefits of regular exercise by paying for the membership fees at fitness clubs for one-half of the participants C) A laboratory research on the effectiveness […]
Date: September 2nd, 2020
There is a distinction between the long-run aggregate supply (LRAS) curve and the short-run aggregate supply (SRAS) curve. In the long run A) the aggregate supply curve is horizontal, while in the short run it is upward sloping. B) all adjustments to changes in the price level have been made, but in the short run […]
Date: September 2nd, 2020
If the price level kept increasing, the short-run aggregate supply (SRAS) curve would get steeper because A) all the unemployed would eventually be hired. B) the long-run aggregate supply curve is horizontal. C) there are limits to how long workers can work long hours and capital can go without proper maintenance. D) the rate at […]
Date: September 2nd, 2020
In the above table, the level of autonomous consumption is A) $9,000. B) $0. C) $5,000. D) $1,000. ANSWER D
Date: September 2nd, 2020
What could cause a decrease in the price level and simultaneously an increase in GDP similar to the 1920s in the United States? A) a decrease in interest rates B) an increase in interest rates C) a decrease in consumer confidence D) an increase in productivity ANSWER D
Date: September 2nd, 2020
Refer to the figure above. What is the equilibrium rate of interest when the credit demand curve is CD1 and the credit supply curve is CS1? A) 2% B) 3% C) 5% D) 4% ANSWER D
Date: September 2nd, 2020
A natural experiment is an empirical study: A) in which the predictions of the model are not required to be tested with data. B) in which some process, outside the control of the experimenter, has assigned subjects to control and treatment groups in a random or nearly random way. C) in which the researcher assigns […]
Date: September 2nd, 2020
The essential difference between paper money and coins as forms of money is that A) paper money serves as a unit of account while coins do not. B) the metallic content of coins makes them more acceptable as money. C) paper is paper and not metal. The metal is more durable. D) paper money issued […]
Date: September 2nd, 2020
John gets paid monthly and pays for everything with cash. When he cashes his check he keeps $200 for food, $100 for utilities, $900 for rent, $50 for transportation, $100 for entertainment and $300 for unexpected expenditures. Which of the following statements is TRUE? A) The transactions demand for money is $1,350, the precautionary demand […]
Date: September 2nd, 2020
