Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask International Economics Expert

problem 1: If nominal GNP increases at a rate of 10 % per year while the GNP deflator increases at 8 % per year, then:

A) Real GNP remains constant
B) Real GNP rises by 10 %
C) Real GNP falls by 8 %
D) Real GNP rises by 2 %

problem 2: Assume that national income is initially at its equilibrium level when desired investment falls. We would expect:

A) A fall in national income, however not by as much as the fall in desired investment.
B) No change in national income even although desired investment spending drops.
C) An increase in national income by an amount equivalent to the reduction in investment spending.
D) A fall in national income by some multiple of the fall in desired investment spending.

problem 3: If the MPC for the economy is 0.8, then:

A) MPS is 1/0.8
B) The multiplier is 4
C) The multiplier is undefined
D) The MPS is 0.2

problem 4: The prevention of main swings in economic activity can be handled most simply by the:

A) Household sector.
B) Business sector.
C) Financial sector.
D) Government sector.

problem 5: Expansionary fiscal policy:

A) Reduces aggregate demand.
B) Takes place when the government takes actions to stimulate the economy.
C) Takes place when the government cuts spending.
D) Takes place when the government reforms the public sector through privatization.

How?

problem 6: Commercial banks make money by:

A) Loaning out pounds they receive as deposits.
B) Printing currency.
C) Collecting bad debts.
D) Earning profits.

Describe.

problem 7: Assume that Mr. Robinson deposits pounds 600 in currency at a bank. Later that day Ms. Volker borrows pounds 1200 from the same bank. The money supply will have:

A) Raised by pounds 1200.
B) Raised by pounds 600.
C) Reduced by pounds 600.
D) Stayed the same.

Describe how?

problem 8: Assume that the per capita income in Alfaland (with initial high per capita income) is growing faster than it is in Betaland (with initial low per capita income).Then:

A) The real value of the output generated by Alfaland exceeds that of Betaland.
B) The difference in living standards between Alfaland and Betaland remain constant over time.
C) The gap in standard of living among the two countries reduces over time.
D) The gap in the standard of living among the two countries widens over time

Describe?

problem 9: If the Bank of England wanted to discourage investment spending and decrease aggregate demand, it could:

A) Decrease the required reserve ratio.
B) Sell securities on open market.
C) Lower the discount rate.
D) Buy securities on open market.

Describe.

problem 10: Assume that the marginal propensity to consume (MPC) is 0.9. Starting from equilibrium, investment demand increases by 50. How much equilibrium income increase?

A) 50
B) 100
C) 250
D) 500

Show the computation and elucidate the mechanism.

International Economics, Economics

  • Category:- International Economics
  • Reference No.:- M91880

Have any Question? 


Related Questions in International Economics

Assignmentaccording to theorist karen horney these 10

Assignment According to theorist Karen Horney, these 10 neurotic needs can be classed into three broad categories: Category 1: Moving Towards People (Compliant)-Need for affection and approval-Need for a powerful partner ...

Assignmentsuppose that there are two products clothing and

Assignment Suppose that there are two products: clothing and soda. Both Brazil and the United States produce each product. Brazil can produce 100,000 units of clothing per year and 50,000 cans of soda. The United States ...

Economics assignmentpart i1 assume the united nations

Economics Assignment PART I 1. Assume the United Nations Educational, Scientific, and Cultural Organization (UNESCO) hired you as an economic development expert. Your mission is to travel to several developing countries ...

Research paper for the us and south korea economylester

Research Paper for the US and South Korea Economy Lester Scholl's administrative assistant calls you on Monday afternoon to set up a conference call between you and the chairman tomorrow morning to discuss the board's re ...

Economics problem seta suppose the united states can

Economics Problem Set A) Suppose the United States can produce 20 tons of FOOD or 8 TRACTORS, and suppose Japan can produce 10 tons of FOOD or 3 TRACTORS. B) What is the opportunity cost of producing tractors in the Unit ...

International economics 7 calculation questionsplease show

International Economics, 7 Calculation Questions Please show the full calculation. Type or pictures of your handwriting are fine! 1. Consider the following data on August 1, 2016 (annual) interest rates US: 0.3% Brazil: ...

Assignmentanalyze measures of economic growth and

Assignment Analyze measures of economic growth, and comparative and absolute advantage in international trade for the following countries: o USA o China o Saudi Arabia o Democratic Republic of Congo NEED 300 WORDS APA FO ...

Case study- required casethe brics brazil russia india

Case Study- Required Case The BRICS (Brazil, Russia, India, China, and South Africa) nations are increasingly important in international business. Provide a comprehensive description of the economy of each of these natio ...

1 discuss the key motives behind foreign direct investment

1) Discuss the key motives behind foreign direct investment. Compare (statistically) the FDI of US corporations with those of foreign multinationals in the US. Why do many emerging-market economies welcome FDI by US mult ...

Assignment global economy national economies and

Assignment: Global Economy, National Economies, and Competition In the first part of the twenty-first century a great recession struck most of the countries in the world. The next decade has been severally impacted with ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro