If an individual borrows $100 at an annual rate of interest of 5%, how much interest will he have to pay at the end of a year? A) $20 B) $10 C) $50 D) $5 ANSWER D
Date: September 2nd, 2020
The relationship between planned real consumption expenditures of households and their current level of real disposable income is A) the consumption function. B) saving. C) dissaving. D) investment. ANSWER A
Date: September 2nd, 2020
Consider two economies: A and B that are completely similar, except their savings rate. The savings rate in economy A is greater than the savings rate in economy B. Which of the following statements is true? A) Capital accumulation will be faster in economy B in comparison to economy A. B) Capital accumulation will be […]
Date: September 2nd, 2020
The Keynesian short-run aggregate supply (SRAS) curve A) shows that real Gross Domestic Product (GDP) will increase only if the price level increases. B) is horizontal. C) assumes a full-employment level of real Gross Domestic Product (GDP). D) does not reflect any changes in nominal Gross Domestic Product (GDP). ANSWER B
Date: September 2nd, 2020
Explain how the “new growth theory” treats technology differently from the way economists used to treat technology. What will be an ideal response? ANSWER Technology used to be treated as an outside factor of growth that could not be explained itself. The new growth theory includes technology as another factor of production and argues […]
Date: September 2nd, 2020
Refer to the table above. At what price does the market for notebooks clear? A) $3 B) $4 C) $2 D) $5 ANSWER B
Date: September 2nd, 2020
The savings rate designates: A) the difference between household consumption and savings. B) the difference between government revenue and government expenditure. C) the rate of return households earn on their savings. D) the fraction of income that households save. ANSWER D
Date: September 2nd, 2020
If an individual borrows $200 at an annual rate of interest of 10%, what is the total amount that he will have to repay after one year? A) $20 B) $220 C) $210 D) $200 ANSWER B
Date: September 2nd, 2020
The rate of return that households expect on their savings is determined by: A) exchange rates. B) interest rates. C) government expenditure. D) tax rates. ANSWER B
Date: September 2nd, 2020
If an individual borrows $100, and pays back $100 after a year to settle his loan, it implies that the rate of interest is: A) 0 %. B) 100%. C) 1%. D) 10%. ANSWER A
Date: September 2nd, 2020
