The more certain private property rights are A) the less people need to invest in education or human capital development. B) the more an economy must grow to maintain a certain living standard. C) the less entrepreneurship there will be. D) the more capital accumulation there will be. ANSWER D
Date: September 2nd, 2020
A federal deficit of $300 billion means that A) the government plans on collecting $300 billion in taxes this year. B) the government has a total debt of $300 billion. C) the government is spending $300 billion a year more than it is collecting in taxes. D) government spending is $300 billion a year. […]
Date: September 2nd, 2020
the aggregate savings in an economy is $1,750 and the GDP of the economy is $55,000. The savings rate in the economy is: A) 1.8%. B) 3.15%. C) 10%. D) 8.96%. ANSWER B
Date: September 2nd, 2020
A debtor’s quantity of credit demanded and the rate of interest are likely to be: A) positively correlated. B) unrelated. C) negatively correlated. D) positively related if the rate of interest is below 10% and negatively related if it is above 10%. ANSWER C
Date: September 2nd, 2020
The real interest rate is given by: A) the nominal interest rate adjusted for inflation. B) the nominal interest rate adjusted for changes in exchange rate. C) the nominal interest rate adjusted for income changes. D) the nominal interest rate adjusted for tax rates. ANSWER A
Date: September 2nd, 2020
The aggregate demand curve would shift to the right as a result of A) a decrease in the U.S. real interest rate. B) tax increases. C) a decrease in the amount of money in circulation. D) a drop in the price level. ANSWER A
Date: September 2nd, 2020
The advantage of holding money as an asset is that A) money earns interest. B) money is liquid. C) the value of money appreciates over time. D) money is safe from thievery. ANSWER B
Date: September 2nd, 2020
Of the following views on the effects of immigration on the receiving nation’s economic growth, which have NOT been suggested by economists Michael Kremer and Julian Simon? A) Technological progress is driven by population growth. B) Immigration increases a nation’s labor pool and encourages ingenuity. C) Immigration costs the local population jobs and greatly lowers […]
Date: September 2nd, 2020
In an economic downturn, sticky wages and prices reduce the economy’s speed of adjustment because A) hyperinflation will likely occur. B) businesses are unable to adjust quickly to changes in aggregate demand. C) they cause deflation. D) union workers would likely quit and look for work elsewhere. ANSWER B
Date: September 2nd, 2020
In the Keynesian model, consumption A) is positively related to income but saving is not systematically related to either income or interest rates. B) and saving are positively related to the real interest rate. C) and saving are positively related to income. D) is positively related to income and saving is negatively related to the […]
Date: September 2nd, 2020
