Question 1

Economic variables whose values are measured in goods are called

Accepted Answer

A) dichotomous variables. 
B) nominal variables. 
C) classical variables. 
D) real variables. 
A) dichotomous variables. 
B) nominal variables. 
C) classical variables. 
D) real variables.

Question 2

Indexing the tax system to take into account the effects of inflation would by itself

Accepted Answer

A) mean that only real interest earnings are taxed. 
B) mean an end to taxing capital gains. 
C) mean an increase in average tax rates. 
D) All of the above are correct. 
A) mean that only real interest earnings are taxed. 
B) mean an end to taxing capital gains. 
C) mean an increase in average tax rates. 
D) All of the above are correct.

Question 3

When deciding how much to save, people care most about

Accepted Answer

A) after-tax nominal interest rates. 
B) after-tax real interest rates. 
C) before-tax real interest rates. 
D) before-tax nominal interest rates. 
A) after-tax nominal interest rates. 
B) after-tax real interest rates. 
C) before-tax real interest rates. 
D) before-tax nominal interest rates.

Question 4

High and unexpected inflation has a greater cost

Accepted Answer

A) for those who borrow than for those who save. 
B) for those who hold a little money than for those who hold a lot of money. 
C) for those who have fixed nominal wages than for those who have nominal wages that adjust with inflation. 
D) All of the above are correct. 
A) for those who borrow than for those who save. 
B) for those who hold a little money than for those who hold a lot of money. 
C) for those who have fixed nominal wages than for those who have nominal wages that adjust with inflation. 
D) All of the above are correct.

Question 5

Dollar prices and relative prices are both nominal variables.

Accepted Answer

A) True 
 B)False

Question 6

When the money market is drawn with the value of money on the vertical axis, an increase in the money supply causes the equilibrium value of money

Accepted Answer

A) and equilibrium quantity of money to increase. 
B) and equilibrium quantity of money to decrease. 
C) to increase, while the equilibrium quantity of money decreases. 
D) to decrease, while the equilibrium quantity of money increases. 
A) and equilibrium quantity of money to increase. 
B) and equilibrium quantity of money to decrease. 
C) to increase, while the equilibrium quantity of money decreases. 
D) to decrease, while the equilibrium quantity of money increases.

Question 7

For a given real interest rate, a decrease in the inflation rate would

Accepted Answer

A) decrease the after-tax real interest rate and so decrease saving. 
B) decrease the after-tax real interest rate and so increase saving. 
C) increase the after-tax real interest rate and so decrease saving. 
D) increase the after-tax real interest rate and so increase saving. 
A) decrease the after-tax real interest rate and so decrease saving. 
B) decrease the after-tax real interest rate and so increase saving. 
C) increase the after-tax real interest rate and so decrease saving. 
D) increase the after-tax real interest rate and so increase saving.

Question 8

When the money market is drawn with the value of money on the vertical axis, if money demand shifts leftward, then initially there is an

Accepted Answer

A) excess demand for money which causes the price level to rise. 
B) excess demand for money which causes the price level to fall. 
C) excess supply of money which causes the price level to rise. 
D) excess supply of money which causes the price level to fall. 
A) excess demand for money which causes the price level to rise. 
B) excess demand for money which causes the price level to fall. 
C) excess supply of money which causes the price level to rise. 
D) excess supply of money which causes the price level to fall.

Economic variables whose values are measured in goods are called

Indexing the tax system to take into account the effects of inflation would by itself

When deciding how much to save, people care most about

High and unexpected inflation has a greater cost

Dollar prices and relative prices are both nominal variables.

When the money market is drawn with the value of money on the vertical axis, an increase in the money supply causes the equilibrium value of money

For a given real interest rate, a decrease in the inflation rate would

When the money market is drawn with the value of money on the vertical axis, if money demand shifts leftward, then initially there is an

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Application

Supply, Demand, and Government Policies

Consumers, Producers, and the Efficiency of Markets

Application: The Costs of Taxation

Application: International Trade

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

The Basic Tools of Finance

Unemployment

The Monetary System

Open-Economy Macroeconomic Models

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Trade-Off Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

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Exam 17: Money Growth and Inflation

Economic variables whose values are measured in goods are called

Indexing the tax system to take into account the effects of inflation would by itself

When deciding how much to save, people care most about

High and unexpected inflation has a greater cost

Dollar prices and relative prices are both nominal variables.

When the money market is drawn with the value of money on the vertical axis, an increase in the money supply causes the equilibrium value of money

For a given real interest rate, a decrease in the inflation rate would

When the money market is drawn with the value of money on the vertical axis, if money demand shifts leftward, then initially there is an

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Application

Supply, Demand, and Government Policies

Consumers, Producers, and the Efficiency of Markets

Application: The Costs of Taxation

Application: International Trade

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

The Basic Tools of Finance

Unemployment

The Monetary System

Open-Economy Macroeconomic Models

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Trade-Off Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

Filters