Which of the following is a stock variable? A) money supply B) wealth C) public debt D) all of the above ANSWER D
Date: September 2nd, 2020
In a closed economy without the government, income equals: A) aggregate savings plus aggregate investment. B) aggregate consumption. C) aggregate savings. D) aggregate savings plus aggregate consumption. ANSWER D
Date: September 2nd, 2020
How does the federal government finance a budget deficit? A) It borrows funds by selling Treasury bonds. B) It cuts spending on entitlement programs. C) It redeems its IOUs. D) It purchases U.S. Treasury bonds. ANSWER A
Date: September 2nd, 2020
Keynes and his followers believed that A) the economy could not operate at any level of real Gross Domestic Product (GDP) less than full capacity. B) capitalism was one economic system that guaranteed full employment. C) wages and prices in the short run were flexible. D) there was no guarantee that a capitalist economy would […]
Date: September 2nd, 2020
If the dollar appreciates and foreign goods become less expensive, the total planned expenditures on domestic goods and services will A) increase due to the open economy effect. B) fall due to the interest rate effect. C) fall due to the open economy effect. D) increase due to the interest rate effect. ANSWER C
Date: September 2nd, 2020
Which of the following would be expected to shift the consumption function up? A) decreases in wealth B) increases in the nation’s population C) expectations of harder times ahead D) changes in real disposable income ANSWER B
Date: September 2nd, 2020
In a perfectly competitive market, situations of surplus or shortage of a good: A) exist till the government or any ruling authority intervenes. B) are permanent phenomena. C) can exist simultaneously. D) are self-corrected due to the competitive nature of the market. ANSWER D
Date: September 2nd, 2020
Refer to the scenario above. What is the national income of the economy? A) $7,000 B) $10,000 C) $2,000 D) $5,000 ANSWER A
Date: September 2nd, 2020
By definition, a direct expenditure offset will occur whenever A) the interest rate falls. B) the interest rate rises. C) the government increases spending in an area that competes with the private sector. D) the government increases spending for the military. ANSWER C
Date: September 2nd, 2020
Credit is: A) the loan that a debtor receives. B) the income that an employee earns. C) any good that cannot be consumed but is used for the production of other goods. D) any good that is available for free. ANSWER A
Date: September 2nd, 2020
