If the government has a spending flow that exceeds the revenues it collects, the government will run a ________ that year. A) surplus B) deficit C) debt D) debt and a deficit ANSWER B
Date: September 2nd, 2020
Which of the following statements is correct? I. A drop in the foreign exchange value of the dollar would decrease aggregate demand II. A decrease in the amount of money in circulation would increase aggregate demand A) I only B) II only C) Both I and II D) Neither I nor II ANSWER D
Date: September 2nd, 2020
If the annual inflation rate in an economy is positive, the purchasing power of a dollar kept in a bank: A) will decrease over time. B) will remain the same over time. C) will increase over time. D) can increase or decrease depending on the economic growth rate. ANSWER A
Date: September 2nd, 2020
Data on wages, education, and many other characteristics of the population that are available to anyone who wants to use them are called: A) public-use data. B) primary data. C) secondary data. D) private-use data. ANSWER A
Date: September 2nd, 2020
You go to work today, but will get your paycheck at the end of the month. This is an example of money serving as a A) store of value. B) unit of accounting. C) standard of deferred payment. D) medium of exchange. ANSWER C
Date: September 2nd, 2020
While the budget deficit represents a ________, the public debt represents a ________. A) flow; flow B) stock; flow C) flow; stock D) stock; stock ANSWER C
Date: September 2nd, 2020
If the annual inflation rate in an economy is negative, the purchasing power of a dollar: A) will remain the same over time. B) will increase over time. C) will decrease over time. D) can increase or decrease depending on the nominal interest rate. ANSWER B
Date: September 2nd, 2020
The price tag on a pair of Nike shoes illustrates how money performs the function of a A) standard of deferred payment. B) store of value. C) unit of accounting. D) medium of exchange. ANSWER C
Date: September 2nd, 2020
Refer to the above figure. The figure represents the saving function for the consumer. Point A represents A) the point at which saving equals zero. B) a situation in which saving is positive. C) a situation in which saving is negative. D) the amount of autonomous consumption. ANSWER C
Date: September 2nd, 2020
Which of the following would cause an increase in aggregate demand (AD)? A) an increase in interest rates B) a decrease in taxes C) a decrease in price levels D) a rise in the foreign exchange value of the dollar ANSWER B
Date: September 2nd, 2020
