When there is an interval between when the fiscal policy changes and corresponding changes in aggregate spending, we have a(n)
A) aggregate time lag.
B) action time lag.
C) recognition time lag.
D) effect time lag.
Answer: D) effect time lag.
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On your first day at work, your boss tells you to call the bank and get the bid and the ask for British pounds. Having just returned from studying in London, you know that the exchange rate should be somewhere around 1.25
You call the number and the lady says "579 and 585." What does that mean? A) She didn't understand your question. B) The bid is 0.579 and the ask is 0.585. C) The ask is 0.579 and the bid is 0.585 D) The bid is 1.2579 and the ask is 1.2585.
Suppose you observe that the price of a good increases and that the quantity of this good sold also increases. If only the demand curve or the supply curve shifts this suggests that
A) supply increased over time while demand remained the same. B) supply decreased over time while demand remained the same. C) demand increased over time while supply remained the same. D) demand decreased over time while supply remained the same.
Expansionary monetary policy causes what?
a. a decrease in money supply b. an increase in interest rate c. a decrease in interest rate d. fewer loans to be initiated
The mean (average) income of 25 employees working in a firm is $1,754 per month. What is the total income of all the employees?
A) $40,000 B) $43,850 C) $56,225 D) $63,950