Which one of the following is TRUE? A) New growth theory suggests that there is no connection between the level of education in a country and its rate of economic growth. B) New growth theory suggests that education benefits only those people who receive it, and not the population as a whole. C) Investments in […]
Date: September 2nd, 2020
Which of the following is NOT a reason why people are motivated to hold money? A) precautionary demand B) liability demand C) asset demand D) transactions demand ANSWER B
Date: September 2nd, 2020
Ceteris paribus, deficit spending results in higher interest rates, which can A) ultimately have a positive impact on productivity gains and society’s standard of living. B) accelerate growth in investment spending. C) crowd out private investment. D) increase the wealth of future generations. ANSWER C
Date: September 2nd, 2020
Which of the following happens if the long-run real interest rates fall? A) The demand for loans fall. B) Employment increases. C) Nominal wages fall. D) Imports increase. ANSWER B
Date: September 2nd, 2020
Which of the following is a checkable and debitable account? A) a savings account B) a brokerage account with your stockbroker C) a checking account D) All of the above are checkable and debitable accounts. ANSWER C
Date: September 2nd, 2020
When two variables move in the same direction, they are said to be: A) unitary correlated. B) uncorrelated. C) positively correlated. D) a negatively correlated. ANSWER C
Date: September 2nd, 2020
What were the major reasons for the lack of sustained growth before modern times? What will be an ideal response? ANSWER There were two main reasons for the lack of sustained growth before modern times. These were: a) The pace of technological change before the year 1800 was slow and almost stagnant compared to […]
Date: September 2nd, 2020
Which of the following is a macroeconomic concept? A) The elasticity of supply of a good B) The per capita income of a country C) The average revenue earned by a firm D) The income elasticity of demand for a good ANSWER B
Date: September 2nd, 2020
Assuming all else equal, the credit supply curve shows the relationship between the quantity of credit supplied and the: A) real wage rate. B) real interest rate. C) income tax rate. D) inflation rate. ANSWER B
Date: September 2nd, 2020
The main reason people hold money is that A) money is intrinsically valuable. B) money is used to buy goods and services. C) money is power. D) money provides a standard of value. ANSWER B
Date: September 2nd, 2020
