Suppose that nominal GDP in year 1 is 200 and nominal GDP in year 2 is 242. Assume that inflation is ten percent per year. How fast did the economy grow between these two years?
A. 10 percent
B. 12 percent
C. 21 percent
D. 42 percent
Answer: A
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If a duopolists' collusive price-fixing game can be played repeatedly,
A) one possible equilibrium is that both firms cheat. B) players can signal their willingness to cooperate. C) players can punish cheaters in the following game. D) All of the above answers are correct.
If the reserve requirement on checkable deposits is .25, the ratio of currency held by the public to
demand deposits is .15, the ratio of time deposits to demand deposits is 3, the reserve requirement on time deposits is 0, and the ratio of excess reserves to demand deposits is 0, then the demand deposit multiplier is A) 5. B) 4. C) 3.33. D) 2.5.
A rise in the domestic interest rate leads to capital inflows, which make the exchange rate appreciate.
Answer the following statement true (T) or false (F)
A country's total output includes all of the following except:
A.) Household consumption. B.) Business investment. C.) Imports. D.) Government services.