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A. True B. False 25. In Post Keynesian economics, a negative feedback is that during a recession people are uncertain about their job and, hence, save more money. As a consequence, they spend less, and this will reduce the sales of goods, and also reduce production. This leads to less employment. A. True B. False 26. Assume that income of Japan, Y equals 600 billion yen, autonomous consumption C* is 50 billion yen, propensity to consume is 0.8, Calculate consumption at the macro level? A. 530 B. 480 C. 300 27. If you receive a wage raise of 6%, but inflation is 8%, it means your nominal wage has increased by 6%, but your real wage is declined by 2%. A. True B. False 20. Assume you bought a second hand car for $10,000.00. However, it was stolen. You have to buy another one, but you have to pay $ 12, 000.00 for the same brand car. How much was the inflation rate for car over the past years? A. 20% B. 16.7% C. 45% 29. If the average cost per month is $2,000.00 for a Canadian family with 4 persons in January, but $2,200.00 at the end of the year. How much was the inflation rate? A. 10% B. 20% C. 14% 30 Commercial banks provide credit; hence, the money supply in the economy is by commercial banks not by the central bank. A. True B. False 3 / Monetary economy deals with money, and the real economy deals with goods, jobs, credit, debt, and incomes. A. True B. False