|
|
Question 411 q) r! P7 W9 S& z- e
An economy in long-run equilibrium experiences a cost-push inflation shock. If a feedback rule monetary policy that focuses on the price level is in place, which of the following effects of the monetary policy change is least likely?
1 u: s8 M F" \5 ^, }6 Q hA) Real gross domestic product decreases and the inflation decreases.
& U# A5 V" Z& m& fB) The price level decreases and output remains unchanged.* K) Z; L# i q2 }/ t2 B! ]- H
C) The rate of money supply growth decreases.
9 j/ I. d5 I0 _( w- h }" D" p( A" ^# }1 `; QD) Aggregate demand decreases. ! ~0 E5 R- U1 h! t
( n6 Q) a! o$ t b2 X* h5 k
Question 42
. ]% d# Q- U* K" I% {/ v) }; FThe velocity of money is the:8 N" M& ^; I: {, Y5 c4 X" Q6 U: y# N
A) rate at which the price index for consumer goods rises.
# o0 J5 @' u0 h/ q/ x8 O$ tB) output expansion multiple of government expenditures.4 D e v( Q' S/ i4 D6 z
C) average number of times a dollar is used to purchase goods and services.
/ v2 W6 i$ k2 `4 X1 [D) number of times a dollar is taken out of the country during a year.
0 S, j+ X/ \8 |( R7 Q 8 G4 e2 ~ j/ t& c
Question 437 Q& ]0 \5 n5 `' v Z G+ L3 F1 o
The advantages of a proprietorship are least likely to include:
, h" {) T9 l/ E# ~A) ease of formation." m" x" G/ l5 _& H
B) simple decision making process.
) F" R( @: |1 J3 g5 \3 I6 pC) single taxation of profits.9 I9 p0 ~. W# o! B. T# _0 C
D) limited liability. / B, g0 q( C; z/ V [ p
- s3 g8 w0 S/ S1 b" N' w
Question 44
/ ^# z- ~4 O" {In theory, the supply of a non-renewable resource is:1 O; W/ C- |. o' S* O
A) fixed over a specific period of time.' B5 `: R, X6 F! {
B) perfectly inelastic at a price that equals the present value of the expected next-period price.
0 B1 R6 Q7 H1 }7 B/ S+ WC) perfectly elastic.( X7 A+ K) t0 D7 E. n7 F5 j7 x
D) perfectly inelastic at the price where demand intersects supply.# i1 V0 B" w0 ?! `
* i: y( Z3 _+ k. u1 F. G* `
Question 457 g/ d( ?. x5 U( ^
Demand-pull inflation would least likely be caused by an increase in:
& z" O% e3 B# I. ]) u+ l! L: OA) the prices of raw materials.7 h* b) _0 u T% s" d. y& F% e
B) the money supply.
) }$ Z) e9 Z+ x# gC) government purchases.
$ R. j; I8 H/ q6 h6 M- O8 |2 `7 ]: YD) foreign incomes.* @. g/ S2 h0 J1 Z) C
|
|