The total interest that a borrower has to pay on a loan is equal to the: A) principal plus the rate of interest. B) principal divided by the rate of interest. C) principal minus the rate of interest. D) principal times the rate of interest. ANSWER D
Date: September 2nd, 2020
An aggregate demand curve A) shifts to the right when the price level increases and to the left when the price level falls. B) shifts to the right when population decreases and shifts to the left when population increases. C) does not shift, unlike individual or market demand curves. D) shifts to the right when […]
Date: September 2nd, 2020
The consumption function will shift with A) a decrease in real disposable income. B) a change in saving. C) a change in household wealth. D) an increase in real disposable income. ANSWER C
Date: September 2nd, 2020
The property of money that allows for the settling of debts that mature in the future is A) store of value. B) liquidity. C) acceptability. D) standard of deferred payment. ANSWER D
Date: September 2nd, 2020
The annual price of a one dollar loan is referred to as the: A) service tax. B) rate of interest. C) discount value. D) principal. ANSWER B
Date: September 2nd, 2020
Which of the following statements is correct? I. When economists derive the aggregate demand curve, they are looking at the effect of the price level on one commodity only. II. Any non-price-level change that increases total planned real spending on domestic goods shifts the AD curve to the right. A) I only B) II only […]
Date: September 2nd, 2020
Refer to the table above. What is the equilibrium quantity of notebooks? A) 4 units B) 10 units C) 20 units D) 12 units ANSWER D
Date: September 2nd, 2020
The government wants to increase its spending by $1 billion to stimulate the economy and is counting on the government spending multiplier to hel A) constructing more low income housing B) a new cruise missile for the military C) expanding the school lunch program D) providing textbooks for college students ANSWER B
Date: September 2nd, 2020
Which one of the following does NOT appear to contribute to economic growth? A) knowledge B) a system of well-defined property rights C) protectionism D) innovation ANSWER C
Date: September 2nd, 2020
According to Keynes, once a system attains an economy-wide equilibrium A) planned investment will be zero. B) there may or may not be excess productive capacity. C) the economy will be at full productive capacity. D) planned consumption will be zero. ANSWER B
Date: September 2nd, 2020
