Question 1

An increase in the demand for loanable funds will occur if there is

Accepted Answer

A) an increase in the real interest rate. 
B) a decrease in the real interest rate. 
C) an increase in expected profits from firm investment projects. 
D) an increase in the nominal interest rate accompanied by an equal increase in inflation. 
A) an increase in the real interest rate. 
B) a decrease in the real interest rate. 
C) an increase in expected profits from firm investment projects. 
D) an increase in the nominal interest rate accompanied by an equal increase in inflation.

Question 2

Financial markets and financial intermediaries comprise the financial system.

Accepted Answer

A) True 
 B)False

Question 3

What is productivity? How does a country's standard of living relate to productivity?

Accepted Answer

Productivity refers to the amount of goo

Question 4

Briefly explain how the miserliness of Ebenezer Scrooge might actually be beneficial for economic growth.

Accepted Answer

Ebenezer Scrooge is known for his unwill

Question 5

When the government runs a deficit,which of the following is true?

Accepted Answer

A) T > TR - G B) G > T + TR C) G > TR - T D) T < G + TR A) T > TR - G B) G > T + TR C) G > TR - T D) T < G + TR

Question 6

Economist Robert Fogel has estimated that by the year 2040,individuals in the United States will be spending

Accepted Answer

A) more time in the workforce and more time in leisure activities than they do today. 
B) less time in the workforce and less time in leisure activities than they do today. 
C) less time in the workforce and more time in leisure activities than they do today. 
D) more time in the workforce and less time in leisure activities than they do today. 
A) more time in the workforce and more time in leisure activities than they do today. 
B) less time in the workforce and less time in leisure activities than they do today. 
C) less time in the workforce and more time in leisure activities than they do today. 
D) more time in the workforce and less time in leisure activities than they do today.

Question 7

If real GDP per capita measured in 2009 dollars was $6,000 in 1950 and $48,000 in 2016,we would say that in the year 2016,the average American could buy ________ times as many goods and services as the average American in 1950.

Accepted Answer

A) 1/8 
B) 4 
C) 8 
D) 12 
A) 1/8 
B) 4 
C) 8 
D) 12

Question 8

The demand for loanable funds is determined by the willingness of ________ to borrow money to engage in new investment projects.

Accepted Answer

A) government 
B) households 
C) banks 
D) firms 
A) government 
B) households 
C) banks 
D) firms

Question 9

Financial securities that represent promises to repay a fixed amount of funds are known as

Accepted Answer

A) bonds. 
B) stocks. 
C) pension funds. 
D) insurance premiums. 
A) bonds. 
B) stocks. 
C) pension funds. 
D) insurance premiums.

Question 10

Using the market for loanable funds,which of the following has the potential to raise the real interest rate?

Accepted Answer

A) an increase in the demand for loanable funds 
B) an increase in the quantity of loanable funds demanded 
C) an increase in the supply of loanable funds 
D) an increase in the quantity of loanable funds supplied 
A) an increase in the demand for loanable funds 
B) an increase in the quantity of loanable funds demanded 
C) an increase in the supply of loanable funds 
D) an increase in the quantity of loanable funds supplied

Question 11

Since 1950,the average length of a recession in the United States has been

Accepted Answer

A) such that recessions barely exist. 
B) less than a year. 
C) between 1 and 2 years. 
D) greater than 2 years. 
A) such that recessions barely exist. 
B) less than a year. 
C) between 1 and 2 years. 
D) greater than 2 years.

Question 12

When the economy reaches a trough in a business cycle,which of the following will occur?

Accepted Answer

A) Income,production,and employment will continue to fall. 
B) Income,production,and employment will begin to rise. 
C) Income and production will rise,but employment will continue to fall. 
D) Employment rises,but income and production will continue to fall. 
A) Income,production,and employment will continue to fall. 
B) Income,production,and employment will begin to rise. 
C) Income and production will rise,but employment will continue to fall. 
D) Employment rises,but income and production will continue to fall.

Question 13

If labor productivity growth slows down in a country,this will

Accepted Answer

A) accelerate the increase in real GDP per capita. 
B) accelerate the increase in nominal GDP. 
C) slow down the increase in real GDP per capita. 
D) slow down the increase in nominal GDP. 
A) accelerate the increase in real GDP per capita. 
B) accelerate the increase in nominal GDP. 
C) slow down the increase in real GDP per capita. 
D) slow down the increase in nominal GDP.

Question 14

Which of the following statements about the budget deficit is true?

Accepted Answer

A) In 1992,the federal budget was balanced. 
B) In 2000,the federal budget was in surplus. 
C) In 2004,the federal budget was in surplus. 
D) In 2011,the federal budget was in surplus. 
A) In 1992,the federal budget was balanced. 
B) In 2000,the federal budget was in surplus. 
C) In 2004,the federal budget was in surplus. 
D) In 2011,the federal budget was in surplus.

Question 15

If GDP grew 3% in 1970,2.2% in 1971 and 2.5% in 1972 then,what is the average annual growth rate over this period?

Accepted Answer

A) 5% 
B) 4% 
C) 2.6% 
D) -2.2% 
A) 5% 
B) 4% 
C) 2.6% 
D) -2.2%

Question 16

The Business Cycle Dating Committee,a part of the ________,officially decides when a recession begins and ends.

Accepted Answer

A) federal government 
B) Bureau of Labor Statistics 
C) National Bureau of Economic Research 
D) Federal Reserve 
A) federal government 
B) Bureau of Labor Statistics 
C) National Bureau of Economic Research 
D) Federal Reserve

Question 17

The key to sustained economic growth is increasing labor productivity.

Accepted Answer

A) True 
 B)False

Question 18

The quantity of goods and services that can be produced by one worker or by one hour of work is referred to as

Accepted Answer

A) technology. 
B) labor productivity. 
C) real GDP. 
D) human capital. 
A) technology. 
B) labor productivity. 
C) real GDP. 
D) human capital.

Question 19

Which of the following will increase the real interest rate?

Accepted Answer

A) an increase in the supply of loanable funds 
B) an increase in household saving 
C) an increase in the demand for loanable funds 
D) an increase in the budget surplus 
A) an increase in the supply of loanable funds 
B) an increase in household saving 
C) an increase in the demand for loanable funds 
D) an increase in the budget surplus

Question 20

If government saving is negative,then

Accepted Answer

A) T > TR. B) G > T. C) T - TR < G. D) Y + TR < C - T. A) T > TR. B) G > T. C) T - TR < G. D) Y + TR < C - T.

An increase in the demand for loanable funds will occur if there is

Financial markets and financial intermediaries comprise the financial system.

What is productivity? How does a country's standard of living relate to productivity?

Briefly explain how the miserliness of Ebenezer Scrooge might actually be beneficial for economic growth.

When the government runs a deficit,which of the following is true?

Economist Robert Fogel has estimated that by the year 2040,individuals in the United States will be spending

If real GDP per capita measured in 2009 dollars was $6,000 in 1950 and $48,000 in 2016,we would say that in the year 2016,the average American could buy ________ times as many goods and services as the average American in 1950.

The demand for loanable funds is determined by the willingness of ________ to borrow money to engage in new investment projects.

Financial securities that represent promises to repay a fixed amount of funds are known as

Using the market for loanable funds,which of the following has the potential to raise the real interest rate?

Since 1950,the average length of a recession in the United States has been

When the economy reaches a trough in a business cycle,which of the following will occur?

If labor productivity growth slows down in a country,this will

Which of the following statements about the budget deficit is true?

If GDP grew 3% in 1970,2.2% in 1971 and 2.5% in 1972 then,what is the average annual growth rate over this period?

The Business Cycle Dating Committee,a part of the ________,officially decides when a recession begins and ends.

The key to sustained economic growth is increasing labor productivity.

The quantity of goods and services that can be produced by one worker or by one hour of work is referred to as

Which of the following will increase the real interest rate?

If government saving is negative,then

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency,government Price Setting,and Taxes

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money,banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation,unemployment,and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

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Exam 10: Economic Growth, the Financial System, and Business Cycles

An increase in the demand for loanable funds will occur if there is

Financial markets and financial intermediaries comprise the financial system.

What is productivity? How does a country's standard of living relate to productivity?

Briefly explain how the miserliness of Ebenezer Scrooge might actually be beneficial for economic growth.

When the government runs a deficit,which of the following is true?

Economist Robert Fogel has estimated that by the year 2040,individuals in the United States will be spending

If real GDP per capita measured in 2009 dollars was $6,000 in 1950 and $48,000 in 2016,we would say that in the year 2016,the average American could buy ________ times as many goods and services as the average American in 1950.

The demand for loanable funds is determined by the willingness of ________ to borrow money to engage in new investment projects.

Financial securities that represent promises to repay a fixed amount of funds are known as

Using the market for loanable funds,which of the following has the potential to raise the real interest rate?

Since 1950,the average length of a recession in the United States has been

When the economy reaches a trough in a business cycle,which of the following will occur?

If labor productivity growth slows down in a country,this will

Which of the following statements about the budget deficit is true?

If GDP grew 3% in 1970,2.2% in 1971 and 2.5% in 1972 then,what is the average annual growth rate over this period?

The Business Cycle Dating Committee,a part of the ________,officially decides when a recession begins and ends.

The key to sustained economic growth is increasing labor productivity.

The quantity of goods and services that can be produced by one worker or by one hour of work is referred to as

Which of the following will increase the real interest rate?

If government saving is negative,then

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency,government Price Setting,and Taxes

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money,banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation,unemployment,and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters