Ask Question, Ask an Expert

+61-413 786 465

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

Question to study a macroeconomy we calculate aggregate

Question: To study a macroeconomy we calculate aggregate quantities in real terms because? 1) it is then easier to take logarithms 2)it is the only way to reconcile the three approaches to measuring GDP 3) we want to get ...

Question - the question about african economyin no more

Question - The question about African Economy In no more than about half a page to a page each, answer the following questions: What are your preconceptions of Africa? When you think of Africa, what comes to mind? Be spe ...

Question consider an online game that is popular in china

Question: Consider an online game that is popular in China. Besides having good skills, players performance also depends on the value of the virtual weapons they have in the game. There are two ways to obtain the virtual ...

Question a firm invents and obtains a patent for a new

Question: A firm invents and obtains a patent for a new strong, biodegradable fabric that is used to makegrocery bags. The demand function for these bags is Q = 800 - p. The firm's cost function isC(Q) = 100 + 100Q + 0.5 ...

Question a due to a technological boom and rapid expansion

Question: (a) Due to a technological boom and rapid expansion of the economy, the Federal Reserve Bank is pursuing a contractionary monetary policy. Using a graphical analysis, show the effects of this policy on the equi ...

Question - sitting on an airplane you are chatting with the

Question - Sitting on an airplane, you are chatting with the person sitting next to you. That person asks you some questions about time series and macroeconometrics. What do you say? Here are some questions: 1. What is t ...

Question president trump has put forward a tax plan that

Question: President Trump has put forward a tax plan that would significantly cut personal and corporate income taxes in the U.S. Assume that Congress passes this tax cut plan and President personal Trump signs it into l ...

Question the knowledge economy what leads to a patent race

Question: The knowledge economy What leads to a patent race? Is such a race productive or unproductive? Hint: Think of how patents allow companies monopoly power for a temporary period. The response must be typed, single ...

Question are shareholders residual claimants in a publicly

Question: Are shareholders residual claimants in a publicly traded corporation? Why or why not? In some industries, like hospitals, for-profit producers compete with nonprofit ones. Who is the residual claimant in a nonp ...

Analyze the concept of exchange rateexplain how the dollar

Analyze the concept of exchange rate. Explain how the dollar price of Euros is determined. Identify a factor that can increase the dollar price of Euros. Identify a factor that can decrease the dollar price of Euros. Exp ...

  • 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

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As