Homework 3-key - NAME Homework 3 ECO 215 SPRING 2008 CUTLER Due at the beginning of class on Wednesday March 19th for ECO 215a Due at the beginning

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
NAME________________________________________________________________________ Homework 3 - ECO 215 - SPRING 2008 - CUTLER Due at the beginning of class on Wednesday, March 19 th for ECO 215a Due at the beginning of class on Thursday, March 20 th for ECO 215b MULTIPLE-CHOICE questions - Please, select the letter which best answers each question, and enter it into the table provided at the end of the homework form. Each multiple-choice question is worth 1 point. 1. In the short run, with prices fixed, how would an increase in government spending affect the DD-AA schedule? (a) It will increase output and appreciate the currency. (b) It will increase output and depreciate the currency. (c) It will decrease output and appreciate the currency. (d) It will decrease output and depreciate the currency. (e) None of the above. Answer: A 2. When EP * /P rises, (a) IM will rise. (b) IM will fall. (c) IM may rise or fall. (d) IM is not affected. (e) None of the above. Answer: C 3. In the short-run, a temporary increase in the money supply (a) Shifts the AA curve to the right, increases output and depreciates the currency
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 09/23/2008 for the course ECONOMICS 240 taught by Professor Cramer during the Spring '08 term at American University in Bulgaria.

Page1 / 4

Homework 3-key - NAME Homework 3 ECO 215 SPRING 2008 CUTLER Due at the beginning of class on Wednesday March 19th for ECO 215a Due at the beginning

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online