If the Fed wants to lower the federal funds rate through open market operations, it ________. A) decreases tax rates B) increases tax rates C) sells bonds D) buys bonds ANSWER D
Date: September 2nd, 2020
Which of the following is a problem associated with extreme levels of poverty? A) High life expectancy B) High infant mortality C) High literacy D) Low fertility ANSWER B
Date: September 2nd, 2020
A major difference between the transactions demand for money and the precautionary demand is that the A) transactions demand is for emergencies while the precautionary demand is for every day expenditures. B) transactions demand involves expected expenditures while the precautionary demand involves unexpected expenditures. C) transactions demand means that people are foregoing interest but they […]
Date: September 2nd, 2020
Double counting occurs when: A) inputs are included in the calculation of the gross domestic product. B) household production is included in the calculation of the gross domestic product. C) depreciation is included in the calculation of the gross domestic product. D) unsold inventories are included in the calculation of the gross domestic product. […]
Date: September 2nd, 2020
If the Fed wants to increase the federal funds rate through open market operations, it ________. A) decreases tax rates B) buys bonds C) sells bonds D) increases tax rates ANSWER C
Date: September 2nd, 2020
Data show that in 2012, the college enrollment in Lithasia increased. In the same year, the sale of hotdogs in Lithasia also increased. The relationship between college enrollment and the sale of hotdogs exhibits: A) a negative correlation. B) a zero correlation. C) a positive correlation. D) a causal relationshi ANSWER C
Date: September 2nd, 2020
On an average, growth in per capita income is associated with a: A) fall in inequality. B) fall in poverty. C) rise in poverty. D) rise in inequality. ANSWER B
Date: September 2nd, 2020
Assuming all else equal, if a household is pessimistic about future income, it is likely to cause a(n): A) shift in the current credit supply curve of the household to the right. B) downward movement along the current credit supply curve of the household. C) upward movement along the current credit supply curve of the […]
Date: September 2nd, 2020
Holding money as a medium of exchange to make payments is A) the capital demand for money. B) the transactions demand for money. C) the precautionary demand for money. D) the asset demand for money. ANSWER B
Date: September 2nd, 2020
Which of the following is likely to be included in a country’s Gross Domestic Product in a particular year? A) An unsold inventory of automobiles produced in that year B) The total amount steel used in the production of automobiles in that year C) The total amount of flour used by bakeries to make bread […]
Date: September 2nd, 2020
