____ is a school of economic thought that uses equation of exchange to analyze the macroeconomic data.
A. Mercantilism
B. Monetarism
C. Supply side economics
D. Keynesianism
Answer: B
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When a(n) ________ in investment increases consumption and real GDP, part of the increase in expenditure is on ________, not ________ goods and services
A) increase; exports; U.S.-produced B) decrease; exports ; U.S.-produced C) increase; imports; U.S.-produced D) increase; imports; foreign-produced E) decrease; imports; U.S.-produced
For a risk averse person, the marginal utility of wealth
A) decreases as wealth increases. B) increases as wealth increases. C) decreases as wealth decreases. D) remains constant as wealth increases.
If speculators with Swiss francs believed the yen was going to depreciate against the dollar, they would most likely: =
A. Purchase euros. B. Not participate in foreign exchange markets because of the volatility. C. Purchase dollars. D. Purchase yen.
The value of total output must equal the value of total income in an economy for all of the following reasons except
A. For the circular nature of spending and income in the economy. B. Government expenditures must equal government revenues. C. One person's expenditures on goods and services is another person's income. D. Income earned is spent on goods and services, which creates additional production.