Economics Multiple Choice Questions
Which of the following will cause the demand curve for gasoline to shift leftward? a. a decrease in the price of gasoline b. an increase in the price of gasoline c. a leftward shift of the supply of gasoline d. a rightward shift of the supply of cars e. a decrease in the price of bicycles Markets reduce transactions co ...continues
Economics Multiple Choice Questions
If supply decreases along a given demand curve, a. an excess quantity demanded will be created, increasing the equilibrium price and causing equilibrium quantity to fall b. an excess quantity supplied will be created, lowering the equilibrium price and causing equilibrium quantity to rise c. an excess quantity demanded will b ...continues
Economics Multiple Choice Questions
Assume that initially G is $100 and equilibrium real GDP demanded is $1,000. If the multiplier is 4 and G increases to $200, real GDP demanded will increase a. by $100 b. by $2,000 c. by $1,000 d. to $1,400 e. to $2,000 If autonomous net taxes decline by $40 billion and the MPC = 0.75, then equilibrium real GDP demanded ...continues
Economics Multiple Choice Questions
Assume autonomous net taxes rise by $500; the marginal propensity to consume = 3/4. Net exports, planned investment, taxes, and government purchases are autonomous and remain fixed. As a result, equilibrium real GDP demanded will a. rise by $500 b. fall by $500 c. rise by $1,500 d. fall by $1,500 e. rise by $2,000 Whic ...continues
Economics Multiple Choice Questions
Large federal budget deficits a. can best be reduced by automatic stabilizers b. make it difficult to use discretionary fiscal policy c. in the mid to late 1980s were the result of a severe recession d. still constitute only about 1 percent of GDP e. have little to do with the growth of the federal debt The lower tax rat ...continues
Economics Multiple Choice Questions
The demand for money varies a. directly with both the price level and the level of real GDP b. inversely with both the price level and the level of real GDP c. inversely with the price level and directly with the level of real GDP d. directly with the price level and inversely with the level of real GDP e. inversely with th ...continues
Economics Multiple Choice Questions
If the Fed increases the money supply, then a. the interest rate declines and the quantity of money demanded increases b. the interest rate declines and the quantity of money demanded declines c. the interest rate increases and the quantity of money demanded increases d. the interest rate increases and the quantity of money ...continues
The behavior of the M1 velocity of money in recent years can be explained by a. stability of interest rates b. a low and stable rate of inflation c. monetary policy that has been successful in stabilizing the economy d. financial innovation creating new substitutes for money M1 e. a large number of banks and savings and loa ...continues
JetSet Travel, Inc. (JTI) has been hugely successful in the distribution of stylish, comfortable shoes for travel. JTI sells its products to approximately 4000 retail accounts in the United States and a mix of independent distributors, licenses, and subsidiaries in 35 countries around the world. Most footwear products are produc ...continues
JetSet Travel, Inc. (JTI) has been hugely successful in the distribution of stylish, comfortable shoes for travel. JTI sells its products to approximately 4000 retail accounts in the United States and a mix of independent distributors, licenses, and subsidiaries in 35 countries around the world. Most footwear products are produc ...continues
