N
neha.neu
Member
#1.What are reserves with respect to the definition of high powered money?
Is M4= Currency + reserves?
#2. In a two commodity world what would shift the budget line to the right?
1.
2.
#3.who is more likely to be risk averse in an insurance contract?
1. insurer
2. policyholder
The answer says its insurer while i think its policyholder
#4.if X and Y are substitutes while Z is a complement of X and Y and if for example C(xy) is the cross price elasticity For X of Y then
1. C(xy) is positive and C(xz) is negative or
2. C(xy) is negative and c(xz) is positive
The answer says 2 my answer is 1.
#5 An increase in net capital inflows to a country will
a. increase its real interest rates
b. increase its imports
c. decrease its exports
the answer says b. why can't it be b and c
#6 Which of the following will move the budget line upwards without changing its slope?
a. price of good x and y fall by 5% while money income decreases by 2.5%
b. prices of good x and y increase by 10% while money income increases by 5%
The answer says a. Why not b?
#7 Can the burden of direct taxes be shifted?
#4.
Is M4= Currency + reserves?
#2. In a two commodity world what would shift the budget line to the right?
1.
2.
#3.who is more likely to be risk averse in an insurance contract?
1. insurer
2. policyholder
The answer says its insurer while i think its policyholder
#4.if X and Y are substitutes while Z is a complement of X and Y and if for example C(xy) is the cross price elasticity For X of Y then
1. C(xy) is positive and C(xz) is negative or
2. C(xy) is negative and c(xz) is positive
The answer says 2 my answer is 1.
#5 An increase in net capital inflows to a country will
a. increase its real interest rates
b. increase its imports
c. decrease its exports
the answer says b. why can't it be b and c
#6 Which of the following will move the budget line upwards without changing its slope?
a. price of good x and y fall by 5% while money income decreases by 2.5%
b. prices of good x and y increase by 10% while money income increases by 5%
The answer says a. Why not b?
#7 Can the burden of direct taxes be shifted?
#4.