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Question 41, L, j6 H# q- M
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?4 W& a9 U% t$ D# ~* |
A) Real gross domestic product decreases and the inflation decreases.) b* k% X5 {" A& H3 x8 v
B) The price level decreases and output remains unchanged.
8 W" J- L3 O' Y; LC) The rate of money supply growth decreases.
; R6 X- v9 Z5 `' Y% w/ qD) Aggregate demand decreases.
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Question 42
+ i h3 k' e9 P, K8 T4 hThe velocity of money is the:: b R( U9 s6 s" Z' D1 r
A) rate at which the price index for consumer goods rises.
) y' o/ J1 |+ v. c. {, y2 rB) output expansion multiple of government expenditures.& F2 n' A3 u1 J& j6 n+ T7 W
C) average number of times a dollar is used to purchase goods and services.) F5 d6 D* _, y9 l1 J- |# c
D) number of times a dollar is taken out of the country during a year.7 k) u1 J, S8 K5 W5 W
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Question 432 {( q' _* D' l8 Q! U/ J
The advantages of a proprietorship are least likely to include:8 D% R1 H$ U' |
A) ease of formation.
, J2 u2 r( A$ CB) simple decision making process.
) |+ j! q8 p- G9 l0 AC) single taxation of profits.
5 O+ E* T! y9 v* S& KD) limited liability.
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) [2 u! ^+ C* D PQuestion 449 S/ v( l, ]: N0 a
In theory, the supply of a non-renewable resource is:
# e9 `. y# D* K L4 _A) fixed over a specific period of time./ K2 x3 n( V# L
B) perfectly inelastic at a price that equals the present value of the expected next-period price.9 ~( s, C8 d% W$ u3 W% d
C) perfectly elastic.& _" X, \- ^: u* ^7 u. V+ {
D) perfectly inelastic at the price where demand intersects supply.
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Question 45: F/ q/ f2 p4 J0 v6 B2 S2 ^
Demand-pull inflation would least likely be caused by an increase in:9 f# L1 z4 }: j% H) e" o
A) the prices of raw materials.6 Z* e- t: _1 s6 f) I
B) the money supply.
$ U! P: C: |) {C) government purchases.
; M- H0 l6 ]* P- K* x4 eD) foreign incomes.( t, D6 H" e+ Y0 {$ g: }; ~. S$ X* H
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