The phenomenon of equipment or structure going through “wear and tear” and eventually becoming obsolete is referred to as: A) depreciation. B) capital tear. C) intertemporal loss. D) creative destruction. ANSWER A
Date: September 2nd, 2020
An increase in the public debt would most likely indicate that A) national saving has increased. B) the budget deficit has increased. C) the budget deficit has decreased. D) the trade deficit has decreased. ANSWER B
Date: September 2nd, 2020
If the real interest rate is greater than the equilibrium real interest rate: A) interest rates tend to rise further. B) the quantity of credit supplied falls short of the quantity of credit demanded. C) the quantity of credit demanded falls short of the quantity of credit supplied. D) the quantity of credit demanded equals […]
Date: September 2nd, 2020
Quantitative easing is likely to lead to a(n) ________. A) increase in unemployment rate B) decrease in the price level C) increase in the federal funds rate D) decrease in the federal funds rate ANSWER D
Date: September 2nd, 2020
Which of the following is an example of a physical capital? A) A factory B) A worker C) A stock D) A bond ANSWER A
Date: September 2nd, 2020
An economy experiences real growth over time with stable aggregate demand. This would likely result in A) decreasing prices. B) increased unemployment. C) increasing prices. D) secular inflation. ANSWER A
Date: September 2nd, 2020
The part of consumption that is independent of disposable income is called A) autonomous consumption. B) fixed consumption. C) automatic consumption. D) personal consumption. ANSWER A
Date: September 2nd, 2020
Which of the following is the rate of unemployment that occurs after all adjustments in the labor market have occurred? A) the structural rate of unemployment B) the cyclical rate of unemployment C) the natural rate of unemployment D) the frictional rate of unemployment ANSWER C
Date: September 2nd, 2020
A person is preparing for a long automobile trip and cashes in a certificate of deposit for cash in case of emergencies along the way. This is an example of the A) transactions demand for money. B) asset demand for money. C) precautionary demand for money. D) wealth demand for money. ANSWER C
Date: September 2nd, 2020
The share of net public debt owed to foreign residents today is close to A) 80 percent. B) 10 percent. C) 100 percent. D) 50 percent. ANSWER D
Date: September 2nd, 2020
