If the nominal interest rate is 5.6% and inflation rate is 2.4%, the real interest rate is ________. A) 4% B) 3.2% C) 6.4% D) 8% ANSWER B
Date: September 2nd, 2020
If the net public debt expanded last year, then which of the following most likely occurred during the year? A) The government’s budget was balanced. B) The government’s tax collections exceeded its spending. C) The government experienced a budget surplus. D) The government experienced a budget deficit. ANSWER D
Date: September 2nd, 2020
Which of the following will be included in the calculation of GDP using the expenditure method? A) A bank’s payment of interest to its customers B) A worker’s wage C) A firm’s payment of employee bonuses D) A domestic producer’s export of clothes ANSWER D
Date: September 2nd, 2020
In the above table, dissaving occurs at every level of income below A) $5,000. B) $7,000. C) $10,000. D) $8,000. ANSWER A
Date: September 2nd, 2020
Which of the following is TRUE? A) APC – APS = 1 B) MPC + MPS = 1 C) 1 + APC = APS D) APC + MPS = 1 ANSWER B
Date: September 2nd, 2020
Even when a particular monetary asset is not performing one of the functions of money well, people still use the asset because A) once an asset is defined as money it is always money. B) people expect money will come back at a later date. C) they have no choice. D) it is still easier […]
Date: September 2nd, 2020
Which of the following statements is true? A) An excess demand for credit exerts an upward pressure on the real rate of interest. B) At rates of interest below the equilibrium rate, there is an excess supply of credit. C) An excess supply of credit exerts an upward pressure on the real rate of interest. […]
Date: September 2nd, 2020
If s denotes savings rate, I denotes aggregate investment, and Y denotes GDP, then which of the following equations is correct? A) I = s × Y B) I =s/Y C) I = Y/s D) Y = s × I ANSWER A
Date: September 2nd, 2020
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
