Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Macroeconomics Expert

problem 1: John Maynard Keynes argued that the basic problem which led to the world depression was:

a) Inadequate demand for goods and services. 
b) The shortage of goods and services. 
c) Negative net exports on goods and services. 
d) Decreasing supply of goods and services.

problem 2: When an economy is producing a level of output that is higher than the equilibrium level, planned expenditures ________ total output and ________ goods and services are being generated than are being demanded.

a) Exceed; fewer
b) Are less than; more 
c) Are less than; fewer
d) Exceed; more

problem 3: When the consumption function is C = 25 + 0.9y and income rises by $100, then consumer spending will rise by:

a) $10.
b) $25.
c) $90.
d) $115.

problem 4: Assume that Ca = 40, MPC = 0.8, I = 10. Equilibrium income is:

2057_equilibrium income.jpg

a) 40.
b) 50.
c) 250.
d) 400.

problem 5: If MPC = 0.75, then the government spending multiplier would be:

a) 0.25.
b) -7.5.
c) 4.
d) 25.

problem 6: The tax multiplier is negative as:

a) Increases in taxes decrease disposable personal income and lead to the reduction in consumption spending. 
b) Taxes always have a negative impact on economy. 
c) Tax rates are inversely related to the tax revenues. 
d) Rises in consumption spending have a negative impact on the tax revenues.

problem 7: When firms receive an economic forecast predicting future raises in the growth of real GDP, they are likely to respond through:

a) Raising their level of investment spending to raise current production capacity. 
b) Raising their level of investment spending to raise future production capacity. 
c) Reducing their level of investment spending to reduce future production capacity. 
d) Reducing their level of investment spending to reduce current production capacity.

problem 8: If you wish for to purchase a new sports car in four years for $75,000, how much would you require having in your bank account now, so after four years you will have $75,000 to buy the car? Suppose that your bank pays 6 percent interest.

a) $51,226
b) $59,408
c) $60,484
d) $70,755

problem 9: Assume that you have $400 and the inflation rate is 5 percent. In order to earn a real return of $16 on your investment, the nominal interest rate requires being near:

a) 0 percent.
b) 4 percent.
c) 6 percent.
d) 9 percent.

problem 10: When a firm wants to finance a new project, it can get financing by:

a) Employing its retained earnings.
b) Selling corporate bonds to public. 
c) Issuing and selling new shares of stock.
d) All the above.

problem 11: Financial intermediaries decrease risk by:

a) Gaining expertise in evaluating and monitoring the investments. 
b) Investing in a big number of projects with independent returns. 
c) Investing in a small number of projects with independent returns. 
d) Limiting the diversity of their investment portfolios.

problem 12: In the ________ increases in the supply of money will ________.

a) Short run; increase total demand and output.
b) Short run; reduce total demand and output. 
c) Long run; lead to lower prices 
d) Long run; increase total demand and output.

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M9453

Have any Question? 


Related Questions in Macroeconomics

What are the fundamental lessons you have learned about

What are the fundamental lessons you have learned about international trade and international trade policy?

Assume that the bank holds no excess reserves and that the

Assume that the bank holds no excess reserves and that the required  reserve ratio  equals 10% of deposits. If a customer deposits $5,000, what would be the total increase in checking account balances throughout all bank ...

Consider a labour market without any government subsidy and

Consider a labour market without any government subsidy and where the market wage is equal to w and all workers are endowed with the same total amount of time T. a) The government, in an attempt to encourage labor supply ...

Assignementnow imagine your team is the reelection campaign

Assignement Now, imagine your team is the reelection campaign committee for Pat Shoo-In, who is your local representative in the U.S. House of Representatives. Your team needs to prepare Pat for an upcoming debate by cre ...

Economicsintroduction250wordsprovide an overview of the

Economics Introduction(250)words Provide an overview of the chosen economy of a country Production output performance analysis(500)words -real gdp , real gdp growth rate, real gdp per capita -define and explain how each ...

Writing a 2 page paperwrite a paper two pages comparing the

Writing a 2 page paper Write a paper (Two pages), comparing the two market models of perfect competition and monopoly. Compare on the following points: characteristics, output, price, effiency in resource utilization, an ...

The baypoint group tbg needs your help with a presentation

The Baypoint Group (TBG) needs your help with a presentation for Academic Computing Services (ACS), a nationwide organization that assists colleges and universities with technology issues. ACS needs more information abou ...

International dumpingconsider a firm - abc inc - that sells

International Dumping Consider a firm - ABC Inc. - that sells calculators to Canada and France. The demand forcalculators in each country is:    Canada: P = 12 - 1/3Q      France: P = 6 - 1/6Q Assume that ABC's total cos ...

Your group is working for a global organization that

Your group is working for a global organization that handles highly classified intellectual property. In many situations and scenarios, the implementation and operations teams have been creating and setting up environmen ...

Suppose that central high school has preferences that can

Suppose that Central High School has preferences that can be represented by the utilityfunctionU(C,X) =CX2. Let us try to determine how the various plans described inthe previous problem will affect the amount that C.H.S ...

  • 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