Assuming all else equal, if the real interest rate decreases, it will lead to: A) a decrease in the quantity of credit demanded by a firm. B) the credit demand curve of a firm to shift to the right. C) an increase in the quantity of credit demanded by a firm. D) the credit demand […]
Date: September 2nd, 2020
What are the three forces that cause the aggregate demand curve to slope down? Explain. What will be an ideal response? ANSWER The three forces are the real-balance effect, the interest rate effect, and the open-economy effect. An increase in the price level causes the purchasing power of money balances to fall, interest rates […]
Date: September 2nd, 2020
The study of factors that contribute to the economic development of a country is A) development economics. B) the theory of technological advancements. C) population growth economics. D) the new technology theory. ANSWER A
Date: September 2nd, 2020
The break-even point refers to A) the amount of autonomous consumption. B) a point at which planned real consumption is for greater than real disposable income. C) the point at which planned real consumption equals real disposable income. D) the maximum amount of dissaving a person can experience. ANSWER C
Date: September 2nd, 2020
The mean income of 25 employees working in a firm is $1,754 per month. What is the total income of all the employees? A) $63,950 B) $43,850 C) $56,225 D) $40,000 ANSWER B
Date: September 2nd, 2020
Which of the following statements is true of economic growth and GDP across the world before 1800? A) There was sustained growth because whatever improvements in GDP were realized were invested in capital equipment. B) The income per capita in all countries throughout the world was less than $500 per capita. C) The income per […]
Date: September 2nd, 2020
Since 1940, the U.S. government has experienced A) twice as many annual budget surpluses as annual budget deficits. B) only one year with a budget surplus. C) about the same number of years with budget deficits as with budget surpluses. D) many more budget deficits than budget surpluses. ANSWER D
Date: September 2nd, 2020
Suppose the typical household holds $1,000 when the interest rate is 5 percent. When the interest rate rises to 6 percent, the typical household would most likely hold A) more money because the opportunity cost of holding money is higher. B) less money because the opportunity cost of holding money is lower. C) less money […]
Date: September 2nd, 2020
Factors that cause an increase in the demand for credit at a given real interest rate cause: A) the credit demand curve to shift to the left. B) an upward movement along the credit demand curve. C) a downward movement along the credit demand curve. D) the credit demand curve to shift to the right. […]
Date: September 2nd, 2020
Counter cyclical policies ________. A) increase the intensity of economic fluctuations B) lead to hyperinflation C) smooth the rate of growth of the economy over time D) lower output below its potential level ANSWER C
Date: September 2nd, 2020
