Answer the following three questions dealing with monetary policy. Survey results appeared in the December 1998 Region magazine, a special issue devoted to an analysis of the nation's economic literacy. Eight months later there still has been no change in corn prices. There's no signup, and no start or end dates. The Classical Dichotomy and Monetary Neutrality David Hume and his contemporaries suggested that economic variable be divided into two groups. To help students better comprehend the domestic and global economic realities and try to predict future course of events References: 1. Gomez Electronics needs to arrange financing for its expansion program.
As a result, the economy experience significant volatility in their economic growth. In this regard, from past experience in the Belizean context, it is known that the government has implemented at. If the Fed reduces the reserve requirement the supply of money will increase. If your expected rate of return is 16 percent, how much should you be willing to pay for this stock today? In other words, people find themselves with more money than they need. Investopedia 2009 Central Bank Definition Investopedia. Answer: A 11 A period of very rapid increase in the overall price level is known as A stagnation.
Changes in the money supply affect nominal variables but not real variables. Circular flow model describes the flow of money and products through the economy. D the unemployment rate declines. C the long run unemployment rate. The change in the equilibrium interest rate is indeterminate.
Bank A offers to lend Gomez the required funds on a loan where interest must be paid. D long- term trends in the level of economic activity. Under this format, the capacity of the device in bytes is derived by multiplying the two numbers and then dividing by eight or nine for memory modules with parity chips. Answer: C 10 Deflation occurs when A the average price level declines. D a recession Answer: A 18 In a business cycle, a trough represents the end of A an expansion. For all we know, you could be the next Adam Smith of our generation. Secondly, reserve requirement affects the money market more.
D the short run production capacity of an economy. Your expectations are that you will not receive a dividend at the end of Year 1, but you will receive a dividend of Rs. Search within a range of numbers Put. Take our amazing quizzes and let us determine how much of an Economics whiz you are! Find materials for this course in the pages linked along the left. B the behavior of each individual. But then the bank will lend the money to a borrower who wants to buy more goods and services. X Exclude words from your search Put - in front of a word you want to leave out.
Bytes Explanation Memory module capacities are typically specified in an a-by-b format. B decrease in the overall level of economic activity. The Economist 2013 Taper tiger. Belize is small in size, prone to natural disasters and environmental fragility. It divides markets into markets for goods and services or markets for factors of production land, labor, capital , and represents all actors as households, firms, or the government. C increase in the overall price level. Answer: A 13 The term business cycle refers to the A short- term ups and downs in the price level.
It is not a real variable, according to the monetary neutrality. Answer: B 20 If the labor force is 500 and employment is 450, then the unemployment rate is A 100%. D all of the above. A macroeconomic policy does not only take into consideration finance but also social development. Production is only beyond the frontier in war generally. Answer: C 9 Inflation is a n A decrease in the overall price level. C the economic growth rate declines.
We know you can do this with ease! Maximize expected total corporate profit. Answer: B 5 The demand for corn has increased in May without any change in supply. Real variables that are measure in units of goods physical units. . A an expansion; a recession B a depression; an expansion C a trough; a peak D a recession; an expansion Answer: A 17 In a business cycle, a peak represents the end of A an expansion. Answer: D 19 It has become conventional to classify an economic downturn as a recession when aggregate output declines for A three consecutive quarters. The order of questions, and items within a question, is randomised each time you take a quiz.
In addition, you expect to sell the stock for Rs. Answer: B 12 The trend of the economy is A the long run growth path of the economy. Thirdly, the interest rate would not change. Which is more preferable, cash or credit? Test your financial smarts with their interactive quizzes. This is an example of a A price floor. Therefore, the Belizean economy is subject to external disturbances from world goods and financial markets. The test places particular emphasis on the determinants of aggregate demand and on the monetary and fiscal policies that are appropriate to achieve particular policy objectives.
Why do we have unemployment and why is it a hindrance to the economy? How would this unexpectedly low inflation rate help or hurt the following? Answer: D 15 A period when the economy shrinks is known as A a recession. The Subject Examination in Principles of Macroeconomics covers material usually taught in a one-semester undergraduate course in the principles of macroeconomics. The wealth that is held in savings account is not physical cash due to the money multiplier, thus the value of this money does not decrease. Why do we have inflation and why is it a problem? A the functioning of individual industries B aggregate behavior of households and industries C the behavior of individual households D the decision- making behavior of individual business firms Answer: B 4 Prices that do not always adjust rapidly to maintain equality between quantity supplied and quantity demanded are A administered prices. Answer: A 7 An increase in the overall price level is known as A deflation. Due to the Fisher effect, the bank has already taken inflation rate into consideration. This aspect of economics deals with principles of economics that apply to a total economic system, particularly the general levels of output and income and interrelations among sectors of the economy.