ECO 2013 FALL 08 TEST 3-1A

ECO 2013 FALL 08 TEST 3-1A - TEST 3-1A ECO 2013 Fall 2008...

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TEST 3-1A Warrington College of Business ECO 2013, Fall 2008 Department of Economics Before handing in your test, please check that you have bubbled your name and UF ID number correctly and that you have bubbled in an answer for each question. Bubble in your new UF ID number, using the first 8 columns. Your test should have 50 questions. Please check to see that it does. Only non-programmable calculators are allowed. Using a programmable calculator results in a penalty of 15 points. Please bubble 3-1 in the two rows on the lower left corner of your bubble sheet, and A in the upper right hand corner. Please sign the back of your bubble sheet. No way of receiving a message, such as a pager, may be consulted during the test. If you have a pager or cell phone and are expecting an urgent message, leave it and your ID with a proctor, who will relay the message to you. 1. China recently announced a. a large increase in interest rates. b. a small increase in interest rates. c. an enormous increase in government purchases. d. a small increase in government purchases. 2. According to The Economist , November 8, 2008, “Mr. Obama confronts three distinct though related challenges: mortgages and foreclosures, recession, and a. widespread inflation.” b. soaring commodities prices.” c. replacing the chairman of the Federal Reserve.” d. the financial crisis.” e. the collapsing dollar.” 3. The Fed’s current target interest rate is a. lower than the Taylor rule indicates. b. lower than the Paulson rule indicates. c. higher than the Taylor rule indicates. d. higher than the Paulson rule indicates. 4. Economists at Goldman Sachs think that up to $500 billion in stimulus is necessary to offset the drop in private spending induced by tighter credit. The standard rule for such a stimulus is that it should be three things, the second of which starts with the letter a. d. b. m. c. r. d. t. e. w. 5. Your instructor thinks that next year’s a. federal deficit will top $1 trillion. b. federal surplus will top $1 trillion. c. trade deficit will top $1 trillion. d. trade surplus will top $1 trillion. 6. Improving information technology has _____ the normal inventory-to-sales ratio and has caused inventory investment to respond more quickly to changes in sales. Those facts have been offered as an explanation of why the economic fluctuation starting in 2001 was _____, a. reduced … L-shaped b. reduced … V-shaped c. raised … L-shaped d. raised … V-shaped e. inverted … X-shaped 7. Suppose the slope of the aggregate expenditure line on the 45 o diagram is ¾. Then to increase equilibrium GDP by $250 billion, the government would shift the AE line up by a. $75 billion or less. 1 SPECIAL O O O O O O O O O CODES O O O O O O O O O
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b. from $75 billion to less than $130 billion.
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This note was uploaded on 03/18/2009 for the course ECO 2013 taught by Professor Denslow during the Spring '05 term at University of Florida.

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ECO 2013 FALL 08 TEST 3-1A - TEST 3-1A ECO 2013 Fall 2008...

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