Microeconomists Would Be Interested in Which of the Following Topics

question 21

Multiple Choice

Microeconomists would be interested in which of the following topics?

• A)How the GST affected the economy.
• B)The unemployment in Europe and Australia.
• C)What is the average income in Australia.
• D)The effect of price on revenue.
• E)The growth of the economy.

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Definitions:

Liquidity Trap

A condition where the effectiveness of monetary policy in spurring economic growth is diminished due to high rates of savings and low interest rates.

Reserve Requirement

Central bank regulations that set the minimum amount of reserves that must be held by a commercial bank, not to be loaned out or spent.

Time Deposits

Time Deposits are bank deposits with a fixed term or period of maturity, during which withdrawal entails a penalty, usually offering higher interest rates than savings accounts.

Original Maturities

The initial term agreed upon at the issuance of a financial instrument or loan, before any extensions or roll-overs.