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
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
