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SAMPLE FINAL EXAM –ECON 352 Fall 2018 The questions below were on previous tests, quizzes or sample problems –realize the actual final will have different questions than one’s students have previously seen, but the format will be similar to this:I understand we will have the full two hours, (rather than 110 Minutes as with the tests. TWO two sided note sheets are allowed; and a calculator (not connected to the web). Cell phones are NOT allowed –keep them turned off, inside your book bag or purse. I will provide scantron forms Fifty multiple choice questions: 20 from Chapters 5, 13 and 15 Ch. 5 six questions 1) The goods market equilibrium condition in an open economy shows that (d = desired) A) NX = Sd -Id. B) Sd= NX- Id. C) Sd= Id- NX. D) Sd= Id. 2) In goods market equilibrium in an open economy, A) the desired amount of exports must equal the desired amount of imports. B) the desired amount of exports must equal the desired amount of imports less the amount lent abroad. C) the desired amount of national saving must equal the desired amount of domestic investment. D) the desired amount of national saving must equal the desired amount of domestic investment plus the current account balance. 3) A small open economy has a current account balance of zero. A rise in the world real interest rate causes 4) A large open economy reduces its investment demand. This causes the world real interest rate to ________ and the country's current account balance to ________. 5) In a two-economy model of the United States and another large economy made up of the rest of the world, if desired saving by the rest of the world declined 6) Assuming no change in the effective tax rate on capital, a decrease in the government budget deficit will reduce the current account deficit if and only if the decrease in the budget deficit A) reduces desired national saving. B) increases desired national saving. C) reduces desired national investment. D) increases desired national investment.