If an asset can be obtained or disposed of without much risk of losing its nominal value, it is said to be A) valuable. B) wealth. C) fiduciary. D) liquid. ANSWER D
Date: September 2nd, 2020
Marginal propensity to consume A) is the amount of consumption that is independent of the level of disposable income. B) is the same as the break-even point. C) is the proportion of total disposable income that is consumed. D) gives the amount a person changes planned consumption for a change in real disposable income. […]
Date: September 2nd, 2020
Supply-side economics focuses attention on how fiscal policy might be used to A) shift the aggregate supply curve out. B) increase consumption. C) align aggregate demand and aggregate supply. D) increase aggregate demand to the full-employment level of real GDP. ANSWER A
Date: September 2nd, 2020
Assuming all else equal, if an airline company decides to purchase new planes, it is likely to cause: A) a downward movement along its credit demand curve. B) its credit demand curve to shift to the right. C) an upward movement along its credit demand curve. D) its credit demand curve to shift to the […]
Date: September 2nd, 2020
A rightward shift of the labor demand curve during a recession due to a government policy leads to ________ if wages are flexible. A) a fall in prices B) a decrease in real wages C) a fall in interest rates D) an increase in employment ANSWER D
Date: September 2nd, 2020
Assuming all else equal, if households are optimistic about their future income, it is likely to cause a(n): A) downward movement along their credit demand curve. B) upward movement along their credit demand curve. C) leftward shift of their credit demand curve. D) rightward shift of their credit demand curve. ANSWER D
Date: September 2nd, 2020
If nominal wages are downwardly rigid, a countercyclical policy during a recession leads to ________. A) a fall in consumption B) an increase in tax rates C) an increase in employment D) a fall in investment ANSWER C
Date: September 2nd, 2020
Assume that the supply curve for a commodity shifts to the left and the demand curve shifts to the right, both by the same degree. Then, in comparison to the initial equilibrium, the new equilibrium will be characterized by: A) a lower price and the same quantity. B) the same price and quantity. C) a […]
Date: September 2nd, 2020
Which of the following correctly identifies a Malthusian cycle? A) Increase in GDP would increase GDP per capita above subsistence, which will cause an increase in the size of population which would increase pressure on resources and eventually reduce GDP per capita. B) Increase in GDP would increase GDP per capita above subsistence, which will […]
Date: September 2nd, 2020
Assuming all else equal, if households are pessimistic about their future income, it is likely to cause a(n): A) upward movement along their credit demand curve. B) rightward shift of their credit demand curve. C) downward movement along their credit demand curve. D) leftward shift of their credit demand curve. ANSWER D
Date: September 2nd, 2020
