Practice Midterm Answers

Practice Midterm Answers - Econ 520 F 10 Answer Key for...

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Econ 520 F 10 Answer Key for Second midterm 1. a 2. e 3. e 4. b 5. a 6. e 7. c 8. d 9. c 10. a 11. a 12. e 13. c (as of last year – now Bernanke has been confirmed for a second term as chairman, which will expire in 2014. His seat on the Board continues to 2020.) 14. a (as of last year, but b (1) at present) 15. d (as of last year, but e (4 ) at present, since he has already appointed 3 and a 4th seat is vacant) 16. d 17. d 18. b 19. b (very hard for some reason – if Fed buys bonds, their prices go up and yields go down. Should be easy.) 20. b 21. a 22. e 23. c (excess reserves only) 24. d 25. c 26. c 27. c (very hard for some reason – an increase in the D for credit (a rightward shift of the schedule) will cause the equilibrium point to move up the upward-sloping S curve, resulting in a higher equilibrium real rate r 0 .) 28. c 29. d 30. c 31. b (very hard for some reason – expanding M requires the Fed + banks to lower real rates in order to increase the total net amount of credit demanded. This is the liquidity effect of a monetary expansion.
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32. d
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This note was uploaded on 11/08/2010 for the course ECON 520 taught by Professor Ogaki during the Fall '07 term at Ohio State.

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Practice Midterm Answers - Econ 520 F 10 Answer Key for...

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