ECON 203 test3 - ID A Econ 203 Exam 3(Spring 2007 Multiple...

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ID: A 1 Econ 203 Exam 3 (Spring 2007) Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. 1. You buy stock and its price rises just as much as the overall price level. Thus, before taxes you made a. a nominal gain, but no real gain, yet you pay taxes on the nominal gain. b. a nominal gain, but no real gain, so you pay no taxes on the nominal gain. c. a nominal and real gain, and you pay taxes on the nominal gain. d. a nominal and real gain, but you pay taxes only on the real gain. 2. Mike, a U.S. citizen, buys $10 of cheese from France. His action alone 3. Monetary neutrality implies that an increase in the quantity of money will 4. Holding exports unchanged, if imports rise by $150 million: 5. Current U.S. currency is a. fiat money with no intrinsic value. b. commodity money with intrinsic value. c. fiat money with intrinsic value. d. commodity money with no intrinsic value. 6. In 1991 the Federal Reserve lowered the reserve requirement ratio from 12 percent to 10 percent. Other things the same this should have
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