quiz2.c.ak - Macroeconomics 302a,b,d Macro Quiz 2c 1 An...

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Macroeconomics 302a,b,d Prof. Nilsen l 1 Macro Quiz 2c 1. An increase in expected future output while holding today’s output constant would (a) increase today’s desired consumption and increase desired national saving. (b) increase today’s desired consumption and decrease desired national saving. (c) decrease today’s desired consumption and increase desired national saving. (d) decrease today’s desired consumption and decrease desired national saving. Answer: B 2. Desired national saving would increase unambiguously if there were (a) an increase in current output and expected future output. (b) an increase in expected future output and government purchases. (c) an increase in expected future output and the expected real interest rate. (d) a fall in both government purchases and expected future output. Answer: D 3. In 2003, your firm’s capital stock equaled $100 million, and in 2004 it equaled $105 million. The average depreciation rate on your capital stock is 20%. Gross investment in 2004 equaled
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This note was uploaded on 04/30/2009 for the course ECONOMICS 302 taught by Professor N during the Spring '09 term at American University in Bulgaria.

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