All of the following are listed in the text as being keys to economic development EXCEPT A) a system of property rights. B) an open economy. C) an educated population. D) a higher level of protectionism. ANSWER D
Date: September 2nd, 2020
When the credit demand curve is relatively steep: A) the quantity of credit demanded is relatively sensitive to changes in the tax rates. B) the quantity of credit demanded is not very sensitive to changes in the real interest rate. C) the quantity of credit demanded is relatively sensitive to changes in the real interest […]
Date: September 2nd, 2020
According to the Ricardian equivalence theorem, a tax cut that increases the government budget deficit will have A) a positive effect on aggregate demand because people look at changes in taxes or government spending in the present. B) no effect on aggregate demand because people only look at changes in taxes or government spending in […]
Date: September 2nd, 2020
If a number greater than the mean of a series of observations is added to the series, the new mean is: A) smaller than the original mean. B) greater than the original mean. C) same as the original mean. D) either greater or smaller than the original mean depending on the number of observations in […]
Date: September 2nd, 2020
Perishable goods such as milk or fruit are never used as money, because they cannot function as a A) store of value. B) unit of accounting. C) standard of deferred payment. D) medium of exchange. ANSWER A
Date: September 2nd, 2020
Suppose that the federal government had a budget deficit of $80 billion in year 1 and $90 billion in year 2, but that it experiences budget surpluses of $40 billion in year 3 and $20 billion in year 4. Also assume that the government uses any budget surpluses to pay down the public debt. At […]
Date: September 2nd, 2020
The credit demand curve is: A) vertical. B) downward sloping. C) horizontal. D) upward sloping. ANSWER B
Date: September 2nd, 2020
As nominal Gross Domestic Product (GDP) rises, the transactions demand for money A) decreases, and the money demand curve shifts to the left. B) remains constant, and the money demand curve remains the same. C) increases, and the money demand curve shifts to the left. D) increases, and the money demand curve shifts to the […]
Date: September 2nd, 2020
Other things remaining same, a right shift in the demand curve will lead to: A) a decrease in the equilibrium price and the equilibrium quantity. B) a decrease in the equilibrium price and an increase in the equilibrium quantity. C) an increase in the equilibrium price and the equilibrium quantity. D) an increase in the […]
Date: September 2nd, 2020
Refer to the above figure. Autonomous consumption is A) only at point A. B) to the left of point B. C) only at point B. D) to the right of point B. ANSWER A
Date: September 2nd, 2020
