Relationships

Question 1

If Human Capital increases, then Economic growth

Answer 1

Increases

Question 2

If Demand increases then the Equilibrium price

Answer 2

increases

Question 3

If Supply increases then the Equilibrium price

Answer 3

decreases

Question 4

If Consumer Spending increases then the Real GDP

Answer 4

increases

Question 5

If Interest rates increase then Investment will

Answer 5

decrease

Question 6

If Inflation increases then Real wages will

Answer 6

decrease

Question 7

If Aggregate demand increases then Price level will

Answer 7

Increase

Question 8

If SR Aggregate supply increases then the Price level will

Answer 8

decrease

Question 9

If Government Spending increases then RealGDP will

Answer 9

increase

Question 10

If Taxes go up then Disposable income will

Answer 10

Go down

Question 11

If MPC goes up then the Spending Multiplier will

Answer 11

Go up

Question 12

If Interest Rates increase then Bond prices will

Answer 12

decrease

Question 13

If the Money Supply increases then the Nominal interest rates will

Answer 13

decrease

Question 14

If the reserve requirements increase then the Money supply will

Answer 14

decrease

Question 15

If the discount rate goes up then the Money supply will

Answer 15

Go down

Question 16

If Central bank buys bonds then Money supply will

Answer 16

increase

Question 17

If Interest on reserves goes up then AD goes

Answer 17

down

Question 18

If Inflation goes up then Real interest rates will

Answer 18

go down

Question 19

If Deficit spending increases then Real interest rates go

Answer 19

up

Question 20

If Capital stock increases then Economic growth will

Answer 20

increase

Question 21

If a currency appreciates then that country’s net exports will

Answer 21

decrease

Question 22

If interest rates go up then Net capital in flow will go

Answer 22

up