answersquiz3spring2007

answersquiz3spring2007 - Economics 302 Spring 2007 Answers...

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Economics 302 Name __________________________________ Spring 2007 Answers to Quiz #3 Student ID Number _______________________ 3/8/07 Discussion Section ________________________ Circle the correct answer for each of the following statements. 1. In a small open economy when spending is greater than production the economy will run a a. Trade deficit. b. Trade surplus. Answer: A 2. If a small open economy runs a trade deficit then it is also a. Lending funds to foreign economies. b. Borrowing funds from foreign economies. Answer: B 3. In a small open economy, net exports is equal to a. Investment minus saving. b. Saving minus investment. Answer: B 4. When a small open economy runs a trade deficit a. Investment is greater than saving. b. Saving is greater than investment. Answer: A 5. Suppose a small open economy’s real interest rate initially equals the world’s real interest rate. Then, if the world real interest rate rises relative to this economy’s real interest rate then this economy will have a
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This note was uploaded on 04/21/2008 for the course ECON 302 taught by Professor Gold during the Spring '07 term at University of Wisconsin.

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answersquiz3spring2007 - Economics 302 Spring 2007 Answers...

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