Question

I don't want explanation , I just want a correct answer, Very quickly.

12- If the slope of the consumption function is equal to one, then
Select one:
a. The multiplier is undefined
b. The multiplier is smaller than one
c. The multiplier is just one
d. The multiplier is larger than one
e. None of the above

11- If the nominal interest rate 8% and expected inflation 5%, the expected real interest rate in year t is approximately
Select one:
a. 5%.
b. 11%.
c. 3%.
d. 8%.
e. 2%.

09- For the Palestinian Economy, the largest component of GDP is
Select one:
a. Government
b. Consumption
c. Net invetsment
d. Gross investment
e. Net exports

08- Euro otes and coins replaced European national currencies in the year
Select one:
a. 1999
b. 1995
c. 1957
d. 2002
e. 2005

07- Based on wage setting behavior, we know that a decrease in the unemployment rate will cause
Select one:
a. an increase in the real wage.
b. a downward shift in the price setting curve
c. no change in the real wage.
d. an upward shift of the WS curve.
e. a reduction in the real wage.

Answer 1

Q-1 :: ANSWER :: (A) The Multiplier Is undefined

=> Explanation ::

The Slope of Consumption function Means Marginal Prosperity To Consume (MPC) so if It Is 1 Then Multiplier =

Multiplier = 1/(1-MPC)

= 1/(1-1)

= 1/0  

= Undefined

Q-2 :: ANSWER :: (C) 3%

=> Explanation ::

   Real interest rate = Nominal Interest Rate - Inflation Rate

= 8 - 5

= 3%

So The Real Interest Rate is 3%

Q-3 :: ANSWER :: (B) Consumption

=> Explanation ::

The Largest Component Of Palestinian GDP Is Consumption Which Is Indicated By The Public Spending in The Economy.

Q-4 :: ANSWER ::(D) 2002

=> Explanation ::

  Euro Notes and coins replaced European National currencies in the January 2002 It is A Biggest Currency change In the History.

Q-5 :: ANSWER :: (A) An Increase In the real Wage

=> Explanation ::

  Based On Wage setting Behavior, The Decrease in the Unemployment Rate will Cause An Increase In The Real Wage.