EQL221 1

________ is the branch of economics that studies the performance of an economy.

• Microeconomics

• Macroeconomics

Macroeconomics covers huge number of people in the economy.

• True

• False

Macroeconomic factors are the broad indicators of financial growth or decline that affect an economy.

• True

• False

A macroeconomic factor may be positive or negative based on how it affects the economy.

• True

• False

______ reflect the amount of return earned by investing money.

• Inflation

• Interest rate

Higher interest rates indicate a _____ value for the currency of a national economy.

• higher

• lower

Inflation is an increase in the cost of goods or services over a period of time. 

• True

• False

Inflation if occurs rapidly is a measure of economic instability while steady inflation is a normal economic factor.

• True

• False

If the GDP is growing well, investors can choose to invest in _____.

• debt

• equity

Long-term changes in technology can influence the attractiveness of investment.

• True

• False