If aggregate demand is stable and there is economic growth, the economy will experience A) secular depreciation. B) secular decline. C) secular deflation. D) secular degeneration. ANSWER C
Date: September 2nd, 2020
The Solow Growth Model is a tool that is used for studying: A) how aggregate demand is determined. B) how net exports are determined. C) how aggregate supply is determined. D) how aggregate income is determined. ANSWER D
Date: September 2nd, 2020
The loanable funds market is also referred to as the: A) spot market. B) credit market. C) exchange market. D) capital market. ANSWER B
Date: September 2nd, 2020
The relationship between the interest rate and the precautionary demand for money is A) nonexistent. B) inverse. C) positive. D) positive sometimes and inverse other times. ANSWER B
Date: September 2nd, 2020
The opportunity cost of holding money A) refers to the amount of paper currency held by the Fed. B) is measured by the alternative interest yield obtainable by holding some other asset. C) is based on the fiduciary monetary system. D) refers to the Fed’s role as the lender of last resort. ANSWER B
Date: September 2nd, 2020
Which of the following is likely to happen due to quantitative easing by the Fed? A) A rightward shift of the demand curve for bank reserves B) A leftward shift of the supply curve of bank reserves C) A leftward shift of the demand curve for bank reserves D) A rightward shift of the supply […]
Date: September 2nd, 2020
The short-run aggregate supply curve in modern Keynesian analysis represents the relationship between A) the real output of goods and services in the economy and the price level when people have fully adjusted their behavior. B) the nominal output of goods and services and the real output of goods and services. C) the real output […]
Date: September 2nd, 2020
The circular flow diagram implies that if accounting is done correctly, ________. A) the flow of income must exceed the implied value of the factors of production B) the implied value of the factors of production must exceed the flow of income C) the flow of expenditure must equal the income of the households making […]
Date: September 2nd, 2020
Assuming all else equal, if a firm decides to pay more dividends and lowers the amount of retained earnings it holds, it will cause: A) an upward movement along the current credit supply curve of the firm. B) a downward movement along the current credit supply curve of the firm. C) the current credit supply […]
Date: September 2nd, 2020
The aggregate production function used in the Solow model expresses GDP as a function of: A) level of technology and total efficiency units of labor only. B) physical capital and level of technology. C) physical capital and total efficiency units of labor only. D) physical capital, level of technology, and total efficiency units of labor. […]
Date: September 2nd, 2020
