Ask Question, Ask an Expert


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

Bullfollowing is the discussion topic on which your

• Following is the discussion topic on which your response needs to be reviewed. Your original response to this discussion is required to be approximately 150 words long. If you pay attention to many of the products and ...

Economics assignmentdevelop a 1750-word analysis of the

Economics Assignment Develop a 1,750-word analysis of the international economy in which you do the following: • Analyze measures of economic growth, and comparative and absolute advantage in international trade for the ...

International tradethis is an individual essay which

International Trade This is an individual essay, which accounts for 30% of your overall mark. The word limit is 2000 words. The submission deadline is 18:00 AEST on Monday, 3 October 2016, and submissions should be typed ...

Microeconomicsinstructionsplease use a word processor such

MICROECONOMICS INSTRUCTIONS: Please use a word processor such as Microsoft Word, Apple Pages or OpenOffice for your answers. If you have trouble editing the graphs, you can also sketch them on paper, take pictures of the ...

Question 1the maximum amount of steel or aluminum that

Question 1. The maximum amount of steel or aluminum that Zambia and Zimbabwe can produce if they fully use all the factors of production at their disposal with the best technology available to them is shown (hypothetical ...

1 what do we mean by economies of scale2 what are internal

1. What do we mean by economies of scale? 2. What are internal economies of scale? What are external economies of scale? 3. What is learning by doing (LBD)? What are LBD spillovers? 4. In medieval Europe, the production ...

Developing economies1 why are some countries today much

Developing Economies 1. Why are some countries today much poorer than other countries? Are today's poor countries destined to always be poorer than today's rich countries? If so, explain why. If not, explain how today's ...

Assignmenta textile manufacturer is closing its north

Assignment A textile manufacturer is closing its North Carolina plant and moving the production of its products to a developing nation in Southeast Asia. The primary reason for the move is the lower labor cost that the o ...

Economics paperlength 2000 wordsyou have been given the

Economics Paper Length: 2000 words. You have been given the responsibility of working with your organization's CEO to do a competitive market analysis of the potential success of one of their existing products. Select yo ...

1 list out agenciesfunds noticed by government of india for

1. List out agencies/funds noticed by government of India for the purpose of deemed export benefits. 2. What is the problem of International Liquidity? In what manner this problem has been solved by IMF?   3. What are th ...

  • 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

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate