The primary benefit of a monetary system of exchange compared to a barter system is the increased
a. ability to record transactions.
b. time necessary to find trading partners.
c. time devoted to shopping.
d. efficiency in arranging transactions.
D
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The economic growth model predicts that
A) GDP per capita of poor countries will grow more rapidly than in rich countries. B) GDP per capita of poor countries will never change. C) Governments must centrally direct the economy for growth to occur. D) GDP per capita of rich countries will grow more rapidly than in poor countries.
The income multiplier is equal to 1/MPC
Indicate whether the statement is true or false
Assume that the expectation of a recession next year causes business investments and household consumption to fall, as well as the financing to support it. If the nation has low mobility international capital markets and a fixed exchange rate system, what happens to the quantity of real loanable funds per time period and net nonreserve international borrowing/investing in the context of the
Three-Sector-Model? a. The quantity of real loanable funds per time period falls and net nonreserve international borrowing/investing becomes more negative (or less positive). b. The quantity of real loanable funds per time period rises and net nonreserve international borrowing/investing becomes more negative (or less positive). c. The quantity of real loanable funds per time period falls and net nonreserve international borrowing/investing becomes more positive (or less negative). d. The quantity of real loanable funds per time period and net nonreserve international borrowing/investing remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
A positive temporary supply side shock will:
A. increase the level of potential output in the long run. B. decrease the price level in the long run. C. increase the price level in the long run. D. have no effect in the long run.