4. For which of the following reasons might inflation cause Real GDP to grow slower than it otherwise would? a. Inflation makes everyone poorer b. Inflation reduces the value of consumer debt c. Inflation increases business investment spending d. Inflation decreases savings in financial form

4. For which of the following reasons might inflation cause Real GDP to grow
slower than it otherwise would?
a. Inflation makes everyone poorer
b. Inflation reduces the value of consumer debt
c. Inflation increases business investment spending
d. Inflation decreases savings in financial form
by

1 Answer

Answer :

d. Inflation decreases savings in financial form
by

Related questions

6. Assume that Potential Real GDP equals $10,000. National Income is therefore $10,000. Of this, consumers will pay $2,000 in taxes, save $1,000, and spend $7,000 on consumer goods. Business Investment spending is $2000. In order to avoid recessions and inflation (to have equilibrium), the government should have a: a. balanced budget b. budget deficit of $1000 c. budget surplus of $1000 d. budget deficit of $2000 C C A A C

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Last Answer : c. budget surplus of $1000

Which of the following is not a component of GDP? (a) Government spending (b) Investment © Interest (d) Net exports

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Last Answer : © Interest

In general, deficit financing can create inflation, but it can be checked if. A) Government expenditure increases the aggregate supply in the aggregate demand ratio B) All the investment is indicated as payment on national debt only C) Only aggregate demand is increased D) All of the above

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Last Answer : Answer: D

Inflation refers to a fall in the value of money. Which of the following is the key measure of inflation in India? A. Consumer Price Index B. Wholesale Price Index C. Personal Consumption Expenditures Price Index D. GDP Deflator E. All of the above

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The balance of payments equals (a) The difference between household spending over earnings (b) The difference between government expenditure over its income © A measure of the value of economic transactions between residents of a country and rest of the world (d) The difference between inflation and unemployment.

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Under progressive taxation, the real value of tax on a given level of real income : (a) decreases under inflation (b) rises under depression (c) rises under inflation (d) remains unchanged under inflation

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For GDP purposes, do economists classify education spending as consumption, investment, or gov't spending?

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GDP at market prices is the sum of Consumption, Investment, Government Spending and Net Exports. „Net‟ exports is (a) Gross exports minus depreciation ; (b) Exports minus imports ; (c) Gross exports earnings minus capital inflow ; (d) Export minus imports of merchandize

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Last Answer : (b) Exports minus imports ;

In a period of inflation and price rises the supply of money remains - (1) the same (2) increases (3) decreases (4) increases or decreases pro-portionately.

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In a period of inflation and price rise the supply of money remains (1) the same (2) increases (3) decreases (4) increases or decreases proportionately.

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Last Answer : increases

7. Which of the following statements is/are true? a. Business Investment Spending occurs when individuals buy stock in the stock market b. Productivity is the United States grew very slowly between 1973 and 1996 c. Because of discouraged workers, the official unemployment rate is too high d. “Full employment” occurs when there is no frictional unemployment

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Demand pull inflation may be caused by (a) An increase in cost (b) A decrease in interest rate © A reduction in government spending (d) An outward shift of aggregate supply.

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Which of the following is not an economic problem? (1) Deciding between paid work leisure (2) Deciding between expenditure on one good and the other (3) Deciding between alternative methods of personal savings (4) Deciding between different ways of spending leisure time

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The marginal propensity to consume is equal to (a) Total spending/Total consumption (b) Total consumption/ Total income. © Change in consumption/ Change in income (d) Change in consumption/ Change in savings.

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Which of the following is not an economic problem ? (1) Deciding between paid work and leisure (2) Deciding between expenditure on one good and the other (3) Deciding between alternative methods of personal savings (4) Deciding between different ways of spending leisure time

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Given Real GDP 8.25%, Nominal GDP 11.25%, Rate of inflation will be (a) 2.5% ; (b) 3% ; (c) 4.25% ; (d) 3.5%

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Given Real GDP of 6.5% and rate of inflation of 5.5% nominal GDP will be……. (a) 12% ; (b) 10% ; (c) 10.5% ; (d) 9.5%

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If Nominal GDP is 11% and Real GDP is 6%, then the difference of 5% represent (a) Depreciation ; (b) Rate of inflation ; (c) Rate of interest ; (d) Tax burden

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The idea that irrespective of how a government chooses to increase spending, either by debt financing or tax financing, the outcome will be the same and demand will remain unchanged, is popularly known as: a) Ricardian theory of equivalence b) Ricardian theory of competitive advantage c) Ricardian theory of stability d) None of the above

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2. Which of the following groups is most hurt by unexpected inflation? a. workers with cost of living adjustments in their labor contracts b. homeownersc. people with large debts to pay for their homes and carsd. people with large retirement savings held in savings accounts

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Consumer expenditures are affected by ________. A. Savings B. Debt C. Credit availability D. All of the above E. None of the above

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A period of expansion and contraction measured by real GDP is called (a) Business cycle (b) Expansion © Recession (d) Contraction

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If a country's debt-to-GDP is currently 25%and its debt is expected to grow from $16 trillion to $20 trillion in the next ten years, what will be the country's GDP have to be in 10 years to maintain the current debt-to-GDP ratio?

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Which of the following groups suffer the most from inflation? (1) Debtros (2) Creditors (3) Business class (4) Holders of real assets

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Would it be possible to have a viable economic model that was not contigent on consumer spending? What would it look like?

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Which of the following is not considered as National Debt? (1) National Savings Certificates (2) Long-term Government Bonds (3) Insurance Policies (4) Provident Fund

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The basis of determining dearness allowance to employees in India is _______ (1) National Income (2) Consumer Price Index (3) Standard of Living (4) Inflation Rate

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In which type of cropping different crops are planted in proximity for any of a number of different reasons, including pest control, pollination, providing habitat for beneficial creatures, maximizing use of space, and to otherwise increase crop productivity? a. Companion Cropping b. Mixed Croppingc. Overlapped croppingd. Intercropping

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Which one of the following statements is correct concerning the weighted average cost of capital (WACC)? a) The WACC may decrease as a firm's debt-equity ratio increases. b) In the computation of WACC, weight assigned to the preferred stock is based on the coupon rate multiplied by the par value of the stock. c) A firm's WACC will decrease as the corporate tax rate decreases. d) The weight of the common stock used in the computation of the WACC is based on the number of shares outstanding multiplied by the book value per share.

Description : Which one of the following statements is correct concerning the weighted average cost of capital (WACC)? a) The WACC may decrease as a firm's debt-equity ratio increases. b) In the computation of ... of the WACC is based on the number of shares outstanding multiplied by the book value per share.

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Last Answer : (4) relationship between income and consumption Explanation: The Consumption function is a single mathematical function used to express consumer spending. It was developed by John Maynard Keynes and ... by current income and induced consumption that is influenced by the economy's income level.

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An economy is in equilibrium when - (1) planned consumption exceeds planned saving (2) planned consumption exceeds planned investment (3) intended saving equals intended investment (4) intended investment exceeds intended savings

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Investment Multiplier is a (a) ratio between income and investment. (b) ratio between investment and savings (c) ratio between consumption and investment (d) None of the abov

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Last Answer : (b) ratio between investment and savings