Economics Questions

all else constant, a smaller marginal propensity to consume causes a __ multiplier a. larger b. smaller c. the marginal propensity to consume does not influence the multiplier

Suppose that in country X households buy more new cars when GDP increases and buy fewer when it contracts. The number of new cars purchased would be considered a ___ variable a. leadingb. Lagging c. coincident d. acyclical

In the last 20 years the use of opiod based narcotics has increased dramatically in US. Use rates have continued to increase during economic expansion and contractions. This suggest that the use of narcotics is a ___ variable a. procyclical b. countercyclical c. acyclical d. leading

Suppose a nations household begin to save more of their income. This expected to __ the interest rate in the market for loanable funds and cause the nations currency to ___. a. decrease, depreciateb.decrease, appreciatec.increase,appreciated.increase, depreciate

Keynesian economists tend to focus on ___ side issuesa. supplyb. demandc. import d. legislative

A ___ gap occurs when output is above potential output a. deflationary b. inflationary c. time-series d. dichotomous

As compared to classical economists, Keynesian economists are more likely to believe that markets may adjust ___ to shocks and may be a. quickly, efficientb. quickly, inefficientc. slowly, efficientd. slowly, inefficient

Suppose that before a recession a nation ecnonomy was groowing 3%. During the recession economic growth was -1.5 . the amplitude of this recession is ___ percantage pointsa. 3 b. 1.5 c. 2.5 d. 4.5

If the risk of buying US assets rises because it is discovered that lending institutions had not carefully evaluated borrowers prior to lending them funds, then a. the dollar will appreciate and the interest rate in the US will riseb. the dollar will appreciate and the interest rate in the US will decreasec. the dollar will deppreciate and the interest rate in the US will rised.the dollar will deppreciate and the interest rate in the US will decrease

When Jamie, a US citizen purchases a wool jacket made in Ireland, the purchase is a. both a US and Irish importb. a US import and Irish exportc. a US export and Irish import d. neither an export nor an import for either country

Net capital outflow equals the purchase of a. foreign assets by domestic residents b. domestic assets by foreign residents c. domestic assets by foreign residents - the purchase of foreign assets by domestic residentsd. foreign assets by domestic residents - the purchase of domestic assets by foreign residents

A country sells more goods and services to foreign countries than it buys from them. it has a a. trade surplus and positive net exportsb. a trade surplus and negative net exportsc. a trade deficit and positive net exports d. a trade deficit and negative net exports

Suppose that chinese citizens purchase fewer assets in the United States. this should cause Chinese renminbi to ___ relative to the US dollar and China net export to a. appreciate, decreaseb. appreciate, increasec. deppreciate, decrease d.deppreciate, increase

Suppose a Big Mac is 3.15 in the Euro area and 5 in the US. the nominal exchange rate between the euro and dollar is 0.8 eu to 1 dollar. According to the economists big mac index, the euro __ and should ___ over time a. undervalued, depreciate b. overvalued, depreciate c.undervalued, appreciated. overvalued, depreciate

A country has 40 billion of domestic investment and net capital outflow of -20 billion. what is the country savings. a. -60b. -20c. 20d. 60

Suppose that more investors expected the US dollar will fall in value in the near future. this will cause the US dollar to ___ relative to the euro and US net exports to ___ a. appreciate, decreaseb.appreciate, increasec. deppreciate, decreased.deppreciate, increase

Suppose that real interest rates in the US rise relative to real interest rates in other sountries. This increase would make foreigners a. more willing to purchase US bonds, so US net capital outflow would fall.b. more willing to purchase US bonds, so US net capital outflow would risec. less willing to purchase US bonds, so US net capital outflow would falld. less willing to purchase US bonds, so US net capital outflow would rise

A country purchases 3 billion of foreign-produced goods and services and ssells 2 billion dollars of domestically produced goods and services to foreign countries. it has a. exports of 3 billion and trade surplus of 1 b. exports of 3 billion and trade deficit of 1 billion c. exports of 2 billion and trade surplus d. exports of 2 billion and trade deficit of 1 billion

Traditional leaders, like councils of elders or tribal chiefs, will most likely resolve business disputes between members of the community.

Customer tastes drive which goods and services will be produced.