Deck 4: Memory, Cognitive Processes, Motivation and Emotion

Question 1

If f(k) = 6k^0.5, s = 0.1, n = 0.1, and d = 0.2, what is the value of k at equilibrium?

A) 1
B)2
C)3
D)4

Answer 1

4

Question 2

If f(k) = 6k^0.5, s = 0.1, n = 0.1, and d = 0.2, what is the value of c (consumption) at equilibrium?

A) 10
B) 12
C) 10.8
D) 11.2

Answer 2

10.8

Question 3

In each of the following cases, one factor affecting money demand changes. You must tell how the second factor would have to change if real money demand were to remain unchanged overall.
-Expected inflation rises; real income ________.

Answer 3

Rises

Question 4

In each of the following cases, one factor affecting money demand changes. You must tell how the second factor would have to change if real money demand were to remain unchanged overall.
-Nominal interest rate on money rises; wealth ________.

Question 5

In each of the following cases, one factor affecting money demand changes. You must tell how the second factor would have to change if real money demand were to remain unchanged overall.
-Risk on stocks and bonds rises; efficiency of payments technology ________.

Question 6

In each of the following cases, one factor affecting money demand changes. You must tell how the second factor would have to change if real money demand were to remain unchanged overall.
-Risk on money rises; real interest rate ________.

Question 7

In each of the following cases, one factor affecting money demand changes. You must tell how the second factor would have to change if real money demand were to remain unchanged overall.
-Liquidity of nonmonetary assets rises; expected inflation ________.

Question 8

In each of the following cases, one factor affecting money demand changes. You must tell how the second factor would have to change if real money demand were to remain unchanged overall.
-Wealth rises; risk on nonmonetary assets ________.

Question 9

The worst recessions after World War II occurred

A) during 1945-1946 and 1981-1982.
B) during 1957-1958 and 1973-1975.
C) during 1945-1946 and 1973-1975.
D) during 1953-1954 and 1981-1982.