Econ 111 - Practice Final Exam

Econ 111 - Practice Final Exam - Econ 111 Spring 2010...

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Econ 111 PRACTICE FINAL EXAM Z.Mukherjee Spring 2010 MULTIPLE CHOICE QUESTIONS (2 points each): 1. If in a closed economy Y = $11 trillion, which of the following combinations would be consistent with national saving of $2.5 trillion? a. C = $9 trillion, G = $.5 trillion b. C = $6.5 trillion, G = $3 trillion c. C = $8.5 trillion, G = $2 trillion d. C = $8 trillion, G = $.5 trillion 2. The slope of the supply of loanable funds curve represents the a. positive relation between the real interest rate and investment. b. positive relation between the real interest rate and saving. c. negative relation between the real interest rate and investment. d. negative relation between the real interest rate and saving. 3. Other things the same, an increase in the interest rate a. would shift the demand for loanable funds to the right. b. would shift the demand for loanable funds to the left. c. would increase the quantity of loanable funds demanded. d. would decrease the quantity of loanable funds demanded. 4. If there is a surplus of loanable funds, then a. the quantity of loanable funds demanded is greater than the quantity of loanable funds supplied and the interest rate is above equilibrium. b. the quantity of loanable funds demanded is greater than the quantity of loanable funds supplied and the interest rate is below equilibrium. c. the quantity of loanable funds supplied is greater than the quantity of loanable funds demanded and the interest rate is above equilibrium. d.
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Econ 111 - Practice Final Exam - Econ 111 Spring 2010...

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