ECON 103- First Exam Questions and Answers 100% accurate
John buys a used car for 5,400 and spends 600 on new parts, made in the US, to fix his car. The end result of theses two transactions is - ANSWER-US consumption purchases increase by 600 and US GDP increases by 600 When the consumer price fix index rises, the typical family - ANSWER-has to spend more dollars to maintain the same standard of living If in a closed economy the national savings are equal to 70,000 and the public savings are equal to 35,000, then how much is the private savings? - ANSWER-35,000 We would expect the interest rate on Bond A to be higher than the interest rate on Bond B if the two bonds have identical characteristics except that - ANSWER-Bond A has a term of 20 years and Bond B has a term of 2 years Which of the following is correct? - ANSWER-None Which of the following bond buyers did not buy the bond that best met his or her objective? - ANSWER-Cecilia held long-term bonds rather than short term bonds to avoid risk If the national saving in a closed economy is greater than zero, which of the following, must be true? - ANSWER-Either the public or private savings must be greater than zero; investment is positive; Y-C-G0 You observe a closed economy that has a government deficit and positive investment. Which of the following is correct? - ANSWER-Private savings is positive; public saving is negative
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