Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Microeconomics Expert

1) If nominal GNP increases at the rate of 10 per cent per year where as the GNP deflator increases at 8 per cent 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%

2) Assume that national income is at first at its equilibrium level when desired investment falls. We will expect

A. a fall in national income, but not by as much as the fall in desired investment
B. no change in national income even though desired investment spending falls
C. an increase in national income by an amount equal to the reduction in investment spending
D. a fall in national income by some multiple of the fall in desired investment spending

3) If 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

Why?

4) Prevention of main swings in economic activity could be handled most easily by

A. household sector
B. business sector
C. financial sector
D. government sector

Describe how.

5) If Bank of England wanted to discourage investment spending and reduce aggregate demand, it can

A. reduce required reserve ratio
B. sell securities on open market
C. lower discount rate
D. buy securities on open market

Describe.

6) Commercial banks create money by

A. loaning out pounds they get as deposits
B. printing currency
C. collecting bad debts
D. earning profits

Describe.

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

A. increased by pounds 1200
B. increased by pounds 600
C. decreased by pounds 600
D. stayed the same

Describe how.

8) Assume that 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. real value of the output produced by Alfaland exceeds that of Betaland
B. difference in the living standards between Alfaland and Betaland remain constant over time
C. gap in the standard of living between two countries decrease over time
D. gap in the standard of living between two countries widens over time

Describe.

9) Expansionary fiscal policy

A. decreases aggregate demand
B. occurs when government takes actions to stimulate the economy
C. occurs when government cuts spending
D. occurs when government reforms public sector through privatisation

How?

10) Assume marginal propensity to consume (MPC) is 0.9. Beginning from equilibrium, investment demand increases by 50. How much equilibrium income increases?

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

Show the calculation and describe the mechanism.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91901

Have any Question? 


Related Questions in Microeconomics

Assignmentone responsibility of an information assurance

Assignment One responsibility of an information assurance professional is to work with the organization's security team to explain risk assessment and report findings to executives. The report is likely to involve sensit ...

Need someone to help with the belowthe theory of market

Need someone to help with the below The theory of market economies emphasizes freedom of choice and limited government intervention. The classic argument for government intervention is market failure - the inability of t ...

Leasing equipmentfor catherine owens onlybullsuggest one

Leasing Equipment For Catherine Owens Only • Suggest one key economic factor that motivates leasing as an option in acquiring an asset. Explain the potential asymmetries that may exist where leasing may be beneficial to ...

Three paragarphs economicswrite 3 paragraphs answering the

Three paragarphs Economics Write 3 paragraphs answering the following questions: 1. How does each of the following relate to the financial crisis of 2007-2008: declines in real estate values, sub-prime mortgage loans, an ...

Great depression economy paperwritten assignmentplease

Great depression , economy paper Written Assignment Please provide a comprehensive answer to the following two questions: 1) Which were the main causes of the Great Depression? 2) Why did the Great Depression last so lon ...

Assignmentthere is the widespread notion that economists

Assignment There is the widespread notion that economists rarely agree with each other. This seems perplexing when we note also that economics is often called the "Queen of the Social Sciences" (meaning that it is the mo ...

Asignment 11 given the production function asy 68 135x1

Assignment 1 1. Given the production function as: y = 6.8 + 1.35x 1 + 7.7x 2 - 8.5x 3 + 0.4x 4 - 0.06x 1 2 - 1.25x 2 2 + 0.2x 1 x 2 and assuming x 3 = 0.32 and x 4 = 4.25 i. Form production function in iso-quant set. ii. ...

Assignmentvisit wwwlovemarkscom and share your thoughts on

Assignment Visit www.lovemarks.com and share your thoughts on Branding and Pricing as it relates.....to "The Future Beyond Brands." Check out the Love/Respect Axis and see just where your favorite brand is sitting. (lmnu ...

Assignmentinstructions the topic of the research paper will

Assignment Instructions: The topic of the research paper will be any disease or condition of the body. The paper must include a thorough description of the disease/condition; current statistics of those affected - epidem ...

Can you write a great paper on a research economic topic10

Can you write a great paper on a Research economic topic 10 page paper Including abstract, introduction, content and conclusion, reference. You can choose any economic topics and analyze the issue from your own perspecti ...

  • 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