If the demand function for a particular good is Q = 20 ? 8P, then demand at a price of $1 is:
A. unit elastic.
B. elastic.
C. inelastic.
D. The elasticity cannot be determined.
Answer: C
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Which of the following is an equilibrium condition of the short-run macro model?
a. Taxes equal transfers. b. Imports equal exports. c. Aggregate expenditure equals output. d. Consumption spending equals autonomous consumption spending. e. Consumption spending equals investment spending plus government spending.
In what type of exchange rate system is the level of official reserves the most important?
A. Reserves are equally important in all systems B. A partially-flexible exchange rate system C. A fixed exchange rate system D. A flexible exchange rate system
Japanese Prime Minister Ryutaro Hashimoto was called the “Herbert Hoover of Japan” because he
A. looked like a very distinguished politician. B. advocated vast public works to combat unemployment. C. advocated budget deficit reduction in the midst of a recession. D. advocated easier monetary policy and lower interest rates to combat recession.
Stocks and bonds are considered to be highly illiquid assets while real estate is considered to be a liquid asset
a. True b. False Indicate whether the statement is true or false