The opportunity cost of current consumption is: A) nominal wage rate. B) the inflation rate. C) real wage rate. D) the real interest rate. ANSWER D
Date: September 2nd, 2020
Something that affects the amount of money in existence will A) affect all markets. B) have no particular effect. C) have an effect only if the change in money is large. D) not affect the economy as a whole but may affect certain key markets such as the market for loans. ANSWER A
Date: September 2nd, 2020
Expansionary monetary policy ________. A) lowers tax rates B) increases interest rates C) increases tax rates D) lowers interest rates ANSWER D
Date: September 2nd, 2020
When policy makers take actions in response to or in anticipation of some change in the overall economy, there is A) passive policy making. B) rationalization policy making. C) rational expectations policy making. D) active policy making. ANSWER D
Date: September 2nd, 2020
Asset demand for money is holding money A) as a medium of exchange to make payments. B) to meet unplanned expenditures and emergencies. C) to speculate on the stock market and bonds. D) as a store of value instead of other assets. ANSWER D
Date: September 2nd, 2020
If the Fed wants to stimulate the economy, ________. A) it reduces money supply B) it lowers spending C) it increases tax rates D) it lowers short-run interest rates ANSWER D
Date: September 2nd, 2020
Money or goods that parents leave to their children in their wills are referred to as: A) bequests. B) interest. C) charity. D) social responsibility. ANSWER A
Date: September 2nd, 2020
Refer to the above figure. Which of the graphs is consistent with the Keynesian short-run aggregate supply curve? A) Graph A B) Graph B C) Graph C D) Graph D ANSWER B
Date: September 2nd, 2020
Which one of the following is a key to economic development? A) an educated population B) the removal of property rights C) the preservation of established means of production D) a high level of protection against imported products ANSWER A
Date: September 2nd, 2020
Activities that firms, universities, and governments undertake to increase their knowledge base are referred to as: A) primary activities. B) research and development (R&D) activities. C) secondary activities. D) tertiary activities. ANSWER B
Date: September 2nd, 2020
