The mean of a data set is the: A) product of all values divided by the number of values. B) sum of all different values multiplied by the number of values. C) difference between the highest value and the lowest value. D) sum of all different values divided by the number of values. ANSWER […]
Date: September 2nd, 2020
The Ricardian equivalence theorem states that A) spending on national defense is a direct expenditure offset. B) an increase in government spending by the federal government leads to offsetting reductions in state government spending. C) government spending financed by taxes is equivalent to government spending financed by borrowing. D) an increase in government spending financed […]
Date: September 2nd, 2020
Which of the following statements is true of growth in the U.S. economy from 1950 to 2007? A) Growth resulting from physical capital > growth resulting from technology > growth resulting from human capital B) Growth resulting from technology > growth resulting from physical capital > growth resulting from human capital C) Growth resulting from […]
Date: September 2nd, 2020
When government spending is less than the tax revenues during a specific time period, this is known as a A) government budget deficit. B) government budget surplus. C) balanced budget. D) public debt. ANSWER B
Date: September 2nd, 2020
A government budget surplus occurs during a budget year when A) tax revenues = government spending. B) tax revenues + government spending = personal income. C) tax revenues > government spending. D) tax revenues < government spending. ANSWER C
Date: September 2nd, 2020
The credit demand curve is the schedule that reports the relationship between the quantity of credit demanded and ________ in an economy, assuming all else equal. A) the average tax rate B) the annual inflation rate C) the nominal rate of interest D) the real rate of interest ANSWER D
Date: September 2nd, 2020
Other things being equal, appreciation of the dollar A) increases aggregate demand in the United States, and may decrease aggregate supply by reducing the prices of imported resources. B) increases aggregate demand in the United States, and may increase aggregate supply by reducing the prices of imported resources. C) decreases aggregate demand in the United […]
Date: September 2nd, 2020
When interest rates rise, the transactions demand for money usually A) decreases. B) increases. C) decreases initially and then increases to the original position. D) does not change. ANSWER A
Date: September 2nd, 2020
For the U.S. economy, on an average: A) growth resulting from technology is greater than the growth resulting from human capital. B) growth resulting from technology is smaller than the growth resulting from physical capital. C) growth resulting from technology equal to the growth resulting from physical capital. D) growth resulting from technology equal to […]
Date: September 2nd, 2020
Explain how savings equals investment in a closed capitalist economy? What will be an ideal response? ANSWER The national income identity is given by Y = C + I + G + NX, where, C is the consumption expenditure, I is the investment expenditure, G is the Government Spending, and NX is the net […]
Date: September 2nd, 2020
