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Spring 2007 - Peters' Class - Practice Exam 1

Spring 2007 - Peters' Class - Practice Exam 1 - Economics...

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Economics 110B Spring 2007 – Sample Midterm 1 Name: ______________________________________ ID#: ______________________________________ Instructions: 1. Count each page and confirm that you have a complete exam (6 pages plus title page) 2. You have 50 minutes to complete this exam (1:00 – 1:50 p.m.) 3. Answer all questions. 4. All answers must be written on the attached test sheets, in the spaces provided. 5. The exam is closed book. 6. Formula sheets are not permitted. 7. The use of any paper that was not provided by the instructor during the exam period is not permitted. 8. Calculators are not permitted. 9. Personal electronic devices are prohibited. 10. Answer multiple choice questions in the blanks provided using capital letters (A,B,C,D). 11. Show all of your work for full credit. 12. Make sure that you clearly label any graphs you present, and clearly define any notation you use. 13. Underline or circle your final answer for mathematical problems. 14. Your exam will not be eligible for re-grading if you use pencil, erasable pen, or any form of correction fluid on your exam. 15. If you submit your exam for re-grading, we reserve the right to re-grade the entire exam. 16. Keep your eyes on your own paper, and keep your paper out of view of your neighbors. 17. If you have any questions about the exam, please ask. STUDENT CONSENT FOR RELEASE OF STUDENT INFORMATION (Buckley Waiver) I hereby authorize the UCSD Economics Department to return my graded examination by placing it in a location accessible to all students in the course. I understand that the return of my examination as described above may result in disclosure of personally identifiable information, that is not public information as defined in UCSD PPM 160-2, and I hereby consent to the disclosure of such information. Quarter Spring 2007 Course Economics 110B Date Instructor Genevieve Peters Student ID# __________________________________________________________________________ Print Name ___________________________________________________________________________ Signature ____________________________________________________________________________
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Economics 110B Prof. Genevieve Peters Spring 2007 Sample Midterm 1 1 Multiple Choice Section (1 point per correct answer) ______ 1) For this question, assume that the expected inflation rate is positive. Given this information, which of the following is always true? A) The real interest rate is greater than the nominal interest rate. B) The real interest rate is negative. C) The nominal interest rate must be equal to the real interest rate. D) The real interest rate is positive. E) none of the above ______ 2) Suppose that the nominal interest rate and expected inflation both increase by 2%. These equal increases in the nominal interest rate and expected inflation will cause: ______
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