Answer to Question #210583 in Macroeconomics for Anisha Kumar

Question

True or False Questions

Question 29

If the goods market equilibrium was Y = 2500-50i, and government expenditure was increased by 50, a possible new IS curve would be Y = 2750-50i, provided α_G was 2.5.

Select one:

True

False

Question 30

In 2020, the expected decline in GDP growth was -19% for Fiji.

Select one:

True

False

Question 31

The aggregate expenditure multiplier in ADAS is larger than that of the ISLM model.

Select one:

True

False

Question 32

The markets involved in IS-LM are goods and money markets

Select one:

True

False

Question 33

The rate of interest (i) is determined in the bonds market

Select one:

True

False

Question 34

A possible expression that can model government spending is G = G_t-1 where (t) is current year.

Select one:

True

False

Question 35

A devaluation will improve current account balance sustainably in the long-run

Select one:

True

False

Answer 1

Q 29

False

This is because the market equilibrium will be affected by the increase in government expenditure.

Q30

False

Fiji had an increase of 3% in GDP in 2020

Q31

True

Q32

True

IS-LM focuses on goods, services and money market.

Q33

True

Q34

True

Q35

False

It is know that devaluation never improves current account balance in both long and short-run of low-income nations.