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Unformatted text preview: Page 1 of 14 Department of Economics Professor Kenneth Train University of California, Berkeley Fall 2008 ECONOMICS 1 FINAL EXAMINATION December 15, 2008 INSTRUCTIONS 1. Please fill in the information below: Student’s Name: _____________________________________ SID #: ____________________________________________ GSI’s Name: ________________________________________ Section Number (Day/Time):___________________________ 2. This exam starts ends at 8:00pm. 3. If you finish before 7:45pm, turn in your exam to your GSI and leave quietly. 4. If you finish after 7:45pm, please remain in your seat until the end of the exam so that you do not disturb others. 5. When time is called, please stop writing and turn in your exam. 6. There is a total of 200 points, 8 questions, and 14 pages (including this cover sheet) points for each question are in parenthesis. 7. NO BLUE BOOKS NEEDED . Please answer the questions in the space provided. If you need extra room to answer the questions, use the backs of the pages. 8. Calculators are not permitted. 9. Good Luck and Happy Holidays! DO NOT TURN THE PAGE UNTIL YOU ARE TOLD TO BEGIN THE EXAM Page 2 of 14 Question 1: TRUE, FALSE, UNCERTAIN. (28 points) For each question decide whether the statement is false, true or uncertain. Your grade is determined by your explanation; an answer without an explanation receives no credit. Use graphs when needed to complement your answer. a) (4 points) Monetary policy is especially effective when the economy is in a liquidity trap. b) (4 points) When two countries have mutual absolute advantages, both countries will benefit from trade. trade....
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This note was uploaded on 08/13/2009 for the course ECON 1 taught by Professor Martholney during the Spring '08 term at University of California, Berkeley.
- Spring '08