Unformatted text preview: ll increase but the real interest rate will remain unchanged. *** D. both the U.S. real exchange rate and the U.S. real interest rate will decrease. 37. Which of the following is the least likely to improve the growth rate of an economy? A. An increase in immigration to the domestic country. B. The government imposes an import quota on agricultural goods. *** C. The government builds more colleges and universities. D. The discovery of a new oil deposits. E. [All of the above would improve the growth rate] 38. An institution that sells shares to the public and uses the proceeds to buy a portfolio of stocks and bonds is called a(n) A. commercial bank. B. insurance company. C. mutual fund. *** D. central bank. 39. Which of the following is true about risk‐averse people? A. Their total utility decreases as a function of wealth at a decreasing rate. B. Their total utility increases as a function of wealth at a decreasing rate. *** C. Their total utility decreases as a function of wealth at an increasing rate. D. Their total utility increases as a function of wealth at an increasing rate. 40. Which of the following will increase the demand for iPads now? A. an increase in the supply of iPads B. a decrease in the price of iPads C. an increase in the expected future price of iPads *** D. a decrease in expected income, assuming iPads are normal goods E. an increase in the price of iPad apps, audio and video at iTunes 41. If the U.S. exports software to the Philippines and a U.S. citizen buys stock in a German automobile company, then A. the NCO in the US will increase and NCO in Germany will decrease. *** B. NX will increase in both the Philippines and in the US. C. NCO will decrease in both the US and Germany. D. NCO will increase in both the US and Germany. 42. If the money supply is unchanged and velocity is constant, then an increase in th...
View Full Document
- Spring '08