People hold money as an asset rather than other assets because A) it holds its value. B) there is no cost to holding money as an asset. C) it grows in value. D) it is highly liquid. ANSWER D
Date: September 2nd, 2020
If the quantity of credit demanded in a market exceeds the quantity of credit supplied in the market: A) the real rate of interest tends to rise. B) the unemployment rate tends to fall. C) the rate of inflation tends to rise. D) the real rate of interest tends to fall. ANSWER A
Date: September 2nd, 2020
Which of the following statements is true? A) Randomization allows for classification of participants according to their choice. B) The subjects in the treatment group and the control group of an experiment are treated identically, except along a single dimension. C) Randomization is not used in medical experiments. D) The subjects in the treatment group […]
Date: September 2nd, 2020
Refer to the scenario above. What will be the capital stock in the economy in the current year, if the capital stock in the last year was worth $600? A) $1200 B) $1040 C) $900 D) $1000 ANSWER B
Date: September 2nd, 2020
What types of unemployment will still exist when the economy is at the natural rate of unemployment? A) frictional, structural, and cyclical unemployment B) frictional and cyclical unemployment only C) frictional and structural unemployment only D) structural and cyclical unemployment only ANSWER C
Date: September 2nd, 2020
If persistent inflation was due to declines in long-run aggregate supply, what pattern would be observed? A) Only prices of services would increase; prices of goods would remain constant. B) Increases in the price level would occur simultaneously with increases in real GDP. C) Increases in the price level would occur simultaneously with decreases in […]
Date: September 2nd, 2020
An upward sloping short-run aggregate supply curve suggests that A) prices and wages are completely inflexible. B) prices and wages adjust in part to short-run demand changes. C) prices and wages are completely flexible. D) real GDP is determined by aggregate supply. ANSWER B
Date: September 2nd, 2020
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
