Q11 Keynesian theory argues that a decreases in the money supply lead to increases in the interest r

Q11 Keynesian theory argues that

a decreases in the money supply lead to increases in the interest rate which increases investment which increases the level of real GDP

b increases in the money supply lead to decreases in the interest rate which increases investment which increases the level of real GDP

c increases in the money supply lead to decreases in the interest rate which decreases investment which decreases the level of real GDP

d increases in the money supply cause consumers to spend more which reduces the unemployment rate and therefore increases real GDP

Q12 A contractionary monetary policy

a will lead to an increase in aggregate demand

b will lead to a decrease in aggregate demand

c is brought about by a lowering of the required reserve ratio

d is brought about by lower interest rates

Q13 Which one of the following helps preserve incentives to develop new technologies?

a tariffs

b income taxes

c patents

d quantity restrictions on imports

Q14 Economic growth is reflected in

a growth in total output

b an increase in tax revenue

c increases in the level of employment

d increase in per capita real GDP

Q15 Which one of the following is FALSE?

a Increases in the capital stock can improve the productivity of labor

b Increases in the size of the labor force improve labor productivity

c Increases in labor productivity can enhance economic growth

d Labor productivity contributes to economic growth

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