Question 1

Explain the development of sub-prime mortgages into bundled financial security.

Accepted Answer

A sub-prime mortgage is defined as the m

Question 2

Define 'sub-prime mortgage'

Accepted Answer

A mortgage made to a borrower

Question 3

Which of the following best explains the ups and downs of the Canadian dollar in the last several years?

Accepted Answer

A) They are caused by changes in productivity and wage rates within Canada 
B) They are the result of differences in inflation rates in Canada compared to those in the United States 
C) They are the result of changes in commodity prices and long-term investment by Canadians to foreign nations 
D) They are the result of changes in commodity prices and long-term investment by foreigners into Canada 
A) They are caused by changes in productivity and wage rates within Canada 
B) They are the result of differences in inflation rates in Canada compared to those in the United States 
C) They are the result of changes in commodity prices and long-term investment by Canadians to foreign nations 
D) They are the result of changes in commodity prices and long-term investment by foreigners into Canada

Question 4

Which of the following economic issues were emerging and gaining intense controversy in North America and Europe between 2012-2016?
A.Globalization and income inequality.
B.Globalization and the re-emergence of fixed exchange rates.
C.Currency devaluations and income inequality.
D.Trickle-down economics and industrialization.

Accepted Answer

A) True 
 B)False

Question 5

According to Keynesian theory,a change in aggregate demand might have little or no effect on the price level.

Accepted Answer

A) True 
 B)False

Question 6

Which one of the following does not explain why Canada survived the financial crisis so much better than did the United States.

Accepted Answer

A) Canada's banking regulations limit the amount of leverage and securitization possible. 
B) Canada's Financial Consumer Agency restricted sub-prime lending. 
C) Canadians never got caught up in the ideology that denies any need for regulation of the banking system. 
D) House prices in Canada did not increase. 
A) Canada's banking regulations limit the amount of leverage and securitization possible. 
B) Canada's Financial Consumer Agency restricted sub-prime lending. 
C) Canadians never got caught up in the ideology that denies any need for regulation of the banking system. 
D) House prices in Canada did not increase.

Question 7

What are the key aspects of Keynesian economics?

Accepted Answer

· Wages and prices tend to be inflexible

Question 8

According to neo-classical economists,if prices are truly flexible,what determines aggregate supply?

Accepted Answer

Aggregate supply would be dete

Question 9

Which of the following do neoclassical economists believe?

Accepted Answer

A) That,in equilibrium,the leakage of savings from the circular flow would always be matched by an equal amount of investment 
B) That if savings exceed investment,the interest rate will fall 
C) That surplus output would lead to a fall in prices 
D) All of the above 
A) That,in equilibrium,the leakage of savings from the circular flow would always be matched by an equal amount of investment 
B) That if savings exceed investment,the interest rate will fall 
C) That surplus output would lead to a fall in prices 
D) All of the above

Question 10

According to Keynes,what determines interest rates?

Accepted Answer

A) The level of saving 
B) The level of investment 
C) The velocity of money 
D) Both saving and investment 
E) The interaction of the demand and supply of money 
A) The level of saving 
B) The level of investment 
C) The velocity of money 
D) Both saving and investment 
E) The interaction of the demand and supply of money

Question 11

In the decade of the 1990s several significant events occurred.What were these events which changed the world and provided evidence of the predominance of the market system?

Accepted Answer

· the collapse of the Soviet Union and,w

Question 12

The abandonment of stimulus packages was advocated in favour of policies for reducing Deficits (thus rejecting Keynesian theory).Explain the arguments for the new approach.

Accepted Answer

1.The practice of running up deficits di

Question 13

The external value of the Canadian dollar has been remarkably stable for several decades.

Accepted Answer

A) True 
 B)False

Question 14

What was the supply-side diagnosis of stagflation?

Accepted Answer

A) It was triggered by the high price of imported oil and accentuated by declining productivity rates. 
B) It was triggered by the stock market crash and accentuated by the low price of imported oil. 
C) It was triggered by the stock market crash and accentuated by declining productivity rates. 
D) It was triggered by the stock market crash and accentuated by the high price of imported oil. 
A) It was triggered by the high price of imported oil and accentuated by declining productivity rates. 
B) It was triggered by the stock market crash and accentuated by the low price of imported oil. 
C) It was triggered by the stock market crash and accentuated by declining productivity rates. 
D) It was triggered by the stock market crash and accentuated by the high price of imported oil.

Question 15

Say's Law suggests that supply creates its own demand.

Accepted Answer

A) True 
 B)False

Question 16

Identify which of the following policy actions would be advocated by Keynesians and which would be advocated by Supply-siders.
a)Privatizing the telecommunication industry.
b)Constructing a national highway.
c)Deregulating the financial industry.
d)Increasing health spending.

Accepted Answer

a)Supply-siders.
b)K

Question 17

What characterized the decade of the 1970s in Canada?

Accepted Answer

A) Prosperity and strong economic growth 
B) Stagflation 
C) Economic recovery from the 1960s depression 
D) Low unemployment and high inflation 
A) Prosperity and strong economic growth 
B) Stagflation 
C) Economic recovery from the 1960s depression 
D) Low unemployment and high inflation

Question 18

Explain the foundation of Keynes's disagreement with neoclassical economists with respect to the inflexibility of prices.

Accepted Answer

· Neoclassicists saw prices adjusting to

Question 19

Define 'hedge fund'

Accepted Answer

An unregulated investment fund

Question 20

Why are wages and prices sticky,according to Keynes?

Accepted Answer

Prices and wages are sticky according to

Explain the development of sub-prime mortgages into bundled financial security.

Define 'sub-prime mortgage'

Which of the following best explains the ups and downs of the Canadian dollar in the last several years?

According to Keynesian theory,a change in aggregate demand might have little or no effect on the price level.

Which one of the following does not explain why Canada survived the financial crisis so much better than did the United States.

What are the key aspects of Keynesian economics?

According to neo-classical economists,if prices are truly flexible,what determines aggregate supply?

Which of the following do neoclassical economists believe?

According to Keynes,what determines interest rates?

In the decade of the 1990s several significant events occurred.What were these events which changed the world and provided evidence of the predominance of the market system?

The abandonment of stimulus packages was advocated in favour of policies for reducing Deficits (thus rejecting Keynesian theory).Explain the arguments for the new approach.

The external value of the Canadian dollar has been remarkably stable for several decades.

What was the supply-side diagnosis of stagflation?

Say's Law suggests that supply creates its own demand.

Identify which of the following policy actions would be advocated by Keynesians and which would be advocated by Supply-siders. a)Privatizing the telecommunication industry. b)Constructing a national highway. c)Deregulating the financial industry. d)Increasing health spending.

What characterized the decade of the 1970s in Canada?

Explain the foundation of Keynes's disagreement with neoclassical economists with respect to the inflexibility of prices.

Define 'hedge fund'

Why are wages and prices sticky,according to Keynes?

The Economic Problem

Demand and Supply: an Introduction

Measuring the Economy 1: GDP and Economic Growth

Measuring the Economy 2: Unemployment and Inflation

Aggregate Demand and Supply

Aggregate Expenditures

Fiscal Policy

Money and Banking

The Money Market and Monetary Policy

International Trade

Exchange Rates and the Balance of Payments

Macroeconomic Policy Revisited

Filters

Exam 13: A Walk Through the Twentieth Century and Beyond

Explain the development of sub-prime mortgages into bundled financial security.

Define 'sub-prime mortgage'

Which of the following best explains the ups and downs of the Canadian dollar in the last several years?

According to Keynesian theory,a change in aggregate demand might have little or no effect on the price level.

Which one of the following does not explain why Canada survived the financial crisis so much better than did the United States.

What are the key aspects of Keynesian economics?

According to neo-classical economists,if prices are truly flexible,what determines aggregate supply?

Which of the following do neoclassical economists believe?

According to Keynes,what determines interest rates?

In the decade of the 1990s several significant events occurred.What were these events which changed the world and provided evidence of the predominance of the market system?

The abandonment of stimulus packages was advocated in favour of policies for reducing Deficits (thus rejecting Keynesian theory).Explain the arguments for the new approach.

The external value of the Canadian dollar has been remarkably stable for several decades.

What was the supply-side diagnosis of stagflation?

Say's Law suggests that supply creates its own demand.

Identify which of the following policy actions would be advocated by Keynesians and which would be advocated by Supply-siders. a)Privatizing the telecommunication industry. b)Constructing a national highway. c)Deregulating the financial industry. d)Increasing health spending.

What characterized the decade of the 1970s in Canada?

Explain the foundation of Keynes's disagreement with neoclassical economists with respect to the inflexibility of prices.

Define 'hedge fund'

Why are wages and prices sticky,according to Keynes?

The Economic Problem

Demand and Supply: an Introduction

Measuring the Economy 1: GDP and Economic Growth

Measuring the Economy 2: Unemployment and Inflation

Aggregate Demand and Supply

Aggregate Expenditures

Fiscal Policy

Money and Banking

The Money Market and Monetary Policy

International Trade

Exchange Rates and the Balance of Payments

Macroeconomic Policy Revisited

Filters