(01.03 MC) If Country A can produce 3 X or 6 Y with a unit of labor and Country B can produce 3 X and 3 Y with a unit of labor, which of the following statements is true?

(05.05 MC) When the government borrows money to fund deficit spending, which of the following is likely to occur?

(05.04 MC) Assume that in Year 1, a government’s expenditure and transfer payments equal $4 billion and its revenue is $4.2 billion; and in Year 2, its expenditure and transfer payments are $5.7 billion and its revenue is $4.5 billion. Which of the following statements is true in this scenario?

(06.03 MC) Assume a competitive foreign exchange market between the Japanese yen and the U.S. dollar. Which of the following best explains the supply of yen in the market for yen?

(05.03 MC) Assume that the money supply increases at a rate that exceeds the long-run growth of real GDP. Which of the following should occur?

(05.02 MC) Use the graph to answer the question that follows.If the economy shown in this graph is in a recession and has not yet reached the trough of the business cycle, this would correspond to

(04.05 MC) How does inflation influence the interest rate and the demand for money in the economy?

(04.04 MC) Which of the following would effectively increase the money multiplier?

(01.06 MC) Assume that the equilibrium price per smartphone in the market of a country was initially $525. If the government of the country is thinking of helping manufacturers to grow by providing subsidies, then how will this action affect the equilibrium price and quantity demand of smartphones in the country?

(03.02 MC) Assume that the marginal propensity to save is 0.2 (or 20%), what is the maximum value of the spending multiplier in the economy?