Money is still useful during times of inflation because A) it still retains the characteristic of predictability of value. B) its opportunity cost falls as inflation rises. C) more money can be made so people can still purchase the goods and services they want. D) it is not a liquid asset. ANSWER A
Date: September 2nd, 2020
________ occurs when the direction of cause and effect is mixed up in a study. A) Adverse causality B) Omitted variable bias C) Reverse causality D) Limited information bias ANSWER C
Date: September 2nd, 2020
Consider the above figure. At a price level of 150 A) total planned production exceeds total planned real expenditures. B) total planned real expenditures exceed total planned real production. C) the price level would rise. D) inventories of unsold goods decline. ANSWER A
Date: September 2nd, 2020
A factory in Techland could not sell 20% of its output during a certain year due to a decrease in demand for its product. Which of the following would have happened if it produced 20% less? A) Techland’s GDP would have been higher. B) Techland’s GDP would have been lower. C) Techland’s trade deficit would […]
Date: September 2nd, 2020
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
