Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask International Economics Expert

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

A) Real GNP remains constant.
B) Real GNP increases by 10 %.
C) Real GNP drops by 8 %.
D) Real GNP increases by 2 %.

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

A) A drop in national income, however not by as much as the drop in desired investment.
B) No change in national income even although desired investment spending drops.
C) The raise in national income by an amount equivalent to the reduction in investment   spending.
D) The drop 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 economy.
C) Takes place when the government cuts spending.
D) Takes place when the government reforms the public sector via privatization.

problem 6: Commercial banks create money by:

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

problem 7: Assume that Mr. Robinson deposits pounds 600 in currency at a bank. Subsequent to 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.

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

A) The real value of output generated by Alfaland exceeds that of Betaland.
B) The difference in living standards among 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 standard of living among the two countries widens over time.

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.

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

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

International Economics, Economics

  • Category:- International Economics
  • Reference No.:- M91951

Have any Question? 


Related Questions in International Economics

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: ...

Projectfor this project you need to analyze and compare the

Project For this project you need to analyze and compare the main economic indicators for 2 countries. The main indicators are listed below and you are to explain what causes each of the indicators to behave in a certain ...

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 ...

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 ...

Can lesotho afford an independent monetary

Can Lesotho afford an independent monetary policy? Requirement: 2100 words, 1.5. Spacing, No plagiarism, apa style of referencing. Includes abstract page and conclusion page

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 ...

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 ...

Assignmentexamples of domestic and international terrorist

Assignment Examples of domestic and international terrorist groups and networks: • HAMAS • IRA • PKK • KKK • ETA • Hezbollah • Aum Shinrikyo Note: You may choose any terrorist organization or network that you would like. ...

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 ...

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 ...

  • 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