Suppose a country is producing $20 million of real GDP. If the economy grows at 10 percent per year, approximately how many years will to take for real GDP to grow to $80 million?
A) 14
B) 7
C) 4
D) 30
A
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Refer to Figure 3-1. A decrease in taste or preference would be represented by a movement from
A) A to B. B) B to A. C) D1 to D2. D) D2 to D1.
Assume that the reserve requirement is 10 percent. If a bank has total deposits of $80 million, then the required reserves must equal:
a. $80 million. b. $12 million. c. $50 million. d. $8 million. e. $10 million.
When Brenda was in college, she worked part-time delivering pizzas and she ate five boxes of macaroni and cheese per week. After graduation, she became a high school teacher and ate only two boxes of macaroni and cheese per week. From this information,
a. macaroni and cheese is a normal good for Brenda b. the law of demand applies to macaroni and cheese for Brenda c. macaroni and cheese are substitute goods d. macaroni and cheese is an inferior good for Brenda e. Brenda's income elasticity of demand for macaroni and cheese is positive
If the United States cuts its government budget deficit, what impact would there be on the IS curve?
A) It would shift right due to higher levels of total spending. B) It would shift left due to lower levels of total spending. C) It would shift left because of lower levels of total spending, and it would shift right if U.S. interest rates decline due to lower borrowing. D) It would shift left because of higher nominal and real interest rates due to increased borrowing.