Which of the following is the best example of an investment in human capital?
a. the purchase of an industrial development bond
b. a graduate student who completed 24 semester units in economics last year
c. the purchase of a lawn mower by a homeowner
d. an unemployed stockbroker who drives a cab in order to pay his bills
b
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Which of the following would NOT cause a shift in the IS curve?
A) an increase in the domestic real interest rate B) an increase in consumer confidence C) a decrease in the expected future profitability of capital D) a decrease in government purchases
Under a flexible exchange rate system, an increase in the value of the U.S. dollar in terms of other currencies is referred to as
A) a depreciation of the U.S. dollar. B) an appreciation of the U.S. dollar. C) a monetizing of the U.S. dollar. D) a devaluation of the U.S. dollar.
According to Say's Law, all goods produced will be sold:
A. As long as the government establishes the correct price. B. Because technology is constantly improving. C. If prices are flexible and free to change. D. If trade barriers protect domestic production.
Why is it difficult for policy makers to rely on the theoretical discussion of the money multiplier to target the money supply?
A. The equation of exchange has been proven to be wrong. B. There is no good measure of reserves in the economy. C. The use of quantitative easing has made it impossible to accurately determine the money supply. D. The amount of excess reserves and cash in the system varies.