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
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
