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Unformatted text preview: Introduction to Macroeconomics ECO 304L Midterm 2, August 4th, 2006 Name: UTEID: Directions You will get 2 bonus points to clearly fill out your name and UTEID both on this cover sheet as well as the scantron (Be sure to bubble it in).This booklet has 8 pages including this cover sheet. Please check the booklet to make sure you have all the pages. If you dont, raise your hand and Ill replace it. This test has 20 multiple choice questions (worth 2 points each) and 5 free response questions (worth 6 points each), for a total of 70 points. The test is open book and open notes. You may use any type of calculator you wish. You have 75 minutes to finish the test. Some test taking tips that you have seen before: Attempting the free response questions first may help you finish faster. For the free response part, mostly I want logical answers. If you write some- thing that basically makes sense, youll get most of the credit, even if your answer is incorrect in the standard sense. ALL answers are supposed to be short. Lengthy incorrect answers get the same zeros short ones do. Dont wait on me to have a question clarified, raise your hand once, but keep working on something till I get a chance to swing by. Good Luck! 1 Multiple Choice Questions 1. The idea of saving a part of your disposable income to insure against un- forseen circumstances is called A) Life-cycle motive for saving. B) Intertemporal substitution motive for saving C) precautionary motive for saving D) forced saving 2. Assume your income this week was $800. The current labor tax rate is 15%. You spent $435 on stuff. What was your saving rate? A) 47% B) 36% C) 80% D) 27% 3. In recent years, private saving by American households has dropped below zero. What impact has that had on the market?...
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This test prep was uploaded on 03/26/2008 for the course ECON 304L taught by Professor Staff during the Fall '07 term at University of Texas at Austin.
- Fall '07