1- The relationshipbetween the level of prices and inflation is: A. The higher t
ID: 1253093 • Letter: 1
Question
1- The relationshipbetween the level of prices and inflation is:
A. The higher the price level,the lower the rate of inflation.
B. The higher the rate ofincrease in the price level, the higher the rate of
inflation.
C. The higher the rate ofincrease in the price level, the lower the rate of
inflation.
D. The higher the price level,the higher the rate of inflation.
2- Which of thefollowing is included in M2?
A. Commercial paper.
B. Stocks.
C. U.S. Treasurybonds.
D. Savings accounts.
3- The demand for moneyrepresents the idea that there is:
A. A positive relationshipbetween the interest rate and the quantity of money
demanded.
B. A negative relationshipbetween the level of aggregate output and the
quantity of moneydemanded.
C. A negative relationshipbetween the interest rate and the quantity of
money demanded.
D. A negative relationshipbetween the price level and the quantity of money
demanded.
4- Different firmschange their prices at different times; this leadsto:
A. Menu cost ofinflation.
B. Shoe leather cost ofinflation.
C. Generalinconvenience.
D. Relative pricedistortions.
5- If S-I and NX areexactly equal to zero i-e the value of imports equalsthe
value of exportsthen:
A. We have tradesurplus.
B. We have tradedeficit.
C. We have balancedtrade.
6- Which of thefollowing causes microeconomic inefficiencies inthe
allocation ofresources?
A. Menu cost ofinflation.
B. Shoe leather cost ofinflation.
C. Generalinconvenience.
D. Relative pricedistortions.
7- The differencebetween a country's merchandise exports and its
merchandise imports isthe:
A. Balance of trade.
B. Balance ofpayments.
C. Capital account.
D. None of the givenoptions.
8- If the U.S. realexchange rate increases, then U.S. ------------------ willfall
and U.S.---------------- will rise.
A. Imports; exports.
B. Income; imports.
C. Exports; income.
D. Exports; imports.
9- If Omar does not havea job and is not currently looking for work buthas
looked in the past, heis considered:
A. Not in the laborforce.
B. Unemployed and in the laborforce.
C. Unemployed.
D. Unemployed and not in thelabor force.
10- A government wishingto reduce the level of unemployment through
the use of fiscal policywould be most likely to:
A. Boost the money supply byrelaxing credit controls.
B. Cut interestrates.
C. Increase the size of thebudget deficit.
D. Encourage a depreciation of the exchangerate.
Explanation / Answer
B,D,C,C,D,C,B,A,D
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.