If the nominal interest rate falls, everything else remaining unchanged, ________. A) the real interest rate will rise B) the inflation rate will decrease C) the real interest rate will remain unchanged D) the real interest rate will fall ANSWER D
Date: September 2nd, 2020
Which of the following is true of the expenditure-based method of national accounting? A) It does not track the purchase of goods and services by the government. B) It only tracks the purchase of goods and services by the government. C) It tracks the purchase of investment goods by firms and households. D) It does […]
Date: September 2nd, 2020
Javier has been thinking about purchasing a bond but is afraid that the bond will lose value. He has decided to hold money instead. This is known as the A) money balance demand for money. B) precautionary demand for money. C) transactions demand for money. D) asset demand for money. ANSWER D
Date: September 2nd, 2020
Which of the following equations captures the aggregate capital stock of the economy in this year, Know? A) Know = (1 – depreciation rate) × Klastyear + I B) Know = (1 + depreciation rate) × Klastyear + I C) Know = (1 – depreciation rate) × Klastyear × I D) Know = (1 – […]
Date: September 2nd, 2020
If the quantity of credit supplied in a market exceeds the quantity of credit demanded in the market: A) the unemployment rate tends to rise. B) the real rate of interest tends to rise. C) the rate of inflation tends to fall. D) the real rate of interest tends to fall. ANSWER D
Date: September 2nd, 2020
The expenditure-based method of national accounting ________. A) only tracks the purchase of goods and services by firms B) does not track the purchase of investment goods by firms and households C) only tracks the purchase of goods and services by the government D) tracks the purchase of all goods by households, firms and the […]
Date: September 2nd, 2020
Assuming all else equal, the ________, the lower the nominal interest rate. A) lower the inflation rate B) higher the inflation rate C) lower the income tax rates D) higher the income tax rates ANSWER A
Date: September 2nd, 2020
Which of the following is consistent with secular deflation? A) a persistently decreasing price level caused by money being withdrawn from the economy B) a persistently increasing price level caused by several periods of economic growth with decreasing AD C) a persistently decreasing price level caused by increases in government expenditures D) a persistently decreasing […]
Date: September 2nd, 2020
Which of the following will be included in the calculation of gross domestic product using the expenditure method? A) Wages paid to labor by firms B) Interest paid by households for loans C) Services purchased by the government D) Dividends paid by firms to shareholders ANSWER C
Date: September 2nd, 2020
If short-run aggregate supply is upward sloping, the assumption is that A) prices are perfectly sticky. B) prices are set by government mandate. C) prices adjust gradually. D) prices are constant. ANSWER C
Date: September 2nd, 2020
