If the nominal interest rate is greater than the real interest rate in an economy: A) the real interest rate must be negative. B) inflation must be positive in the economy. C) inflation must be zero in the economy. D) inflation must be negative in the economy. ANSWER B
Date: September 2nd, 2020
Which of the following statements is true? A) For positive growth, consumption in an economy should always be less than savings. B) The greater the savings rate in an economy, the slower is the rate of capital accumulation. C) The greater the consumption expenditure in an economy, the faster is capital accumulation. D) Extremely high […]
Date: September 2nd, 2020
Refer to the scenario above. Which of the following statements is true of the model? A) The model predicts that two additional years of education is likely to increase future earnings by 60 percent. B) The prediction of the model can be applied to unlimited years of additional education. C) The predictions of this model […]
Date: September 2nd, 2020
A monetary system is preferable over the barter system because it A) is easier to track by the government. B) limits cash leakages. C) reduces transaction costs. D) is determined by the Congress. ANSWER C
Date: September 2nd, 2020
Which of the following factors of production is least likely to show diminishing marginal product? A) Capital B) Labor C) Technology D) Land ANSWER C
Date: September 2nd, 2020
Refer to the scenario above. Which of the followings statements is true of the model? A) According to the model two additional years of education will increase an individual’s future wages 1.20 times. B) The predictions of this model can be verified empirically. C) According to the model two additional years of education will increase […]
Date: September 2nd, 2020
If the real interest rate is greater than the nominal interest rate in an economy: A) inflation must be negative in the economy. B) inflation must be positive in the economy. C) inflation must be zero in the economy. D) the nominal interest rate must be equal to zero. ANSWER A
Date: September 2nd, 2020
Continuous increase in investment in which of the following is most likely to cause sustained growth? A) Capital B) Technology C) Land D) Labor ANSWER B
Date: September 2nd, 2020
If the crowding-out effect is complete and the marginal propensity to save is 0.25, then an increase in government spending of $100 billion will generate how much more real GDP? A) $0 B) $400 billion C) $25 billion D) $100 billion ANSWER A
Date: September 2nd, 2020
Public debt is held as A) Treasury Bills, Treasury Notes, Treasury Bonds, and U.S. Savings Bonds. B) U.S. Notes. C) Federal Reserve Notes. D) corporate bonds and common stocks of the largest companies. ANSWER A
Date: September 2nd, 2020
