Productio n Possibilities Frontier

I'm not sure if this is A or D. I'm leaning towards A. What do you think? 4. The production possibilities frontier between two normal goods and services is typically bowed out or concave to the origin because: A) society must give up one good to get more of the other. B) consumers do not want too much of either goo ...continues

MPC and Mpm

Don't have the patience for math. Can you help? 67. The marginal propensity to consume (MPC) equals 0.3, and the marginal propensity to import (MPm) is 0.1. If Americans suddenly increase their desire for European cars and the MPm increases to 0.3, on the basis of the Keynesian model of output determination: A) the mul ...continues

MPC and Marginal Propensity to Import (MPm)

Hate math 68. In an open economy, MPC = 0.6, MPm = 0.2. This implies that: A) MPS in the open economy is lower than in the closed economy. B) MPS = 0.4 only if the economy were closed. C) in the open economy, if GDP increases by 200 spending on consumption = 120. D) in the open economy, if GDP increases by 200 ...continues

Interest rate and inflation

75. The nominal fixed rate of interest on your car loan is 10 percent. When inflation accelerates from 2 percent to 4 percent the real rate of interest on your car loan is: A) 6 percent. B) 14 percent. C) 10 percent. D) 12 percent. E) none of the above.

Capital gains and losses

77. If you bought a $1,000 worth of stock in 1970 and it rose 50 percent over the decade but prices doubled in the same period, you received a real capital gain or loss of? A) A loss of $500.00 or 50 percent of your original investment. B) A gain of $500.00 or 50 percent of your initial investment. C) A loss of $1000 ...continues

Aggregate Demand & Supply

Don't know if this is A or E. What do you think? 79. If total aggregate demand exceeded the amount of goods and services that the economy can produce at full employment: A) the short-run aggregate supply curve would accommodate the demand by shifting outward. B) a dramatic contraction in spending would occur. C) ...continues

Banks

47. The multiple expansion of bank deposits usually requires how many banks for complete money creation? A) 1 B) 3 C) 5 D) 10 E) there is no limit to the number of banks that can be involved in this process.

American Bank Reserves

53. New reserves for the American banking system can come into existence when: A) aggregate demand falls. B) currency flows out of the country. C) the Federal Reserve sells an asset. D) the Federal Reserve buys an asset. E) individuals hold more of their money in the form of coin and currency.

GDP in Keynesian model

44. To find equilibrium GDP in the Keynesian model of a closed economy, we add to the C + I schedule: A) government expenditures on goods and services plus government transfer expenditures. B) government expenditures on goods and services minus tax receipts. C) government expenditures on goods and services if financed ...continues

Factor Market Prices

13. I wasn't sure if it was D or E. Leaning towards E. What do you think? Prices in factor markets are primarily determined by A) government regulation. B) big business collusion. C) the interaction of business supply without household demand. D) the interaction of household supply with business demand. E ...continues