381 Final Fall 2009 Answers

381 Final Fall 2009 Answers - Econ 381 Fall 2009 Final Exam...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Econ 381 Fall 2009 Final Exam Instructor: Matthew Butler Multiple Choice Questions (100 Points): Questions 1 through 10 are multiple choice questions. You may mark than one answer. If more than one answer is marked the question will receive 10 points divided by the number of selections made in selecting the correct choice. Each question is worth 10 points. You do not need to show work for any of the multiple choice questions, however you might find it useful to use the back of the pages with multiple choice questions on them to verify your answers. If you change your answer you must clearly indicate which answer is the one you want graded. 1. The demand for real money balances is generally assumed to: a. be exogenous b. be constant c. increase as real incomes increases d. decrease as real income increases 2. If the fed announces that it will raise the money supply in the future but does not change the money supply today [Hint use: ( 29 i Y L P M , = ]: a. both the nominal interest rate and the current price level will decrease b. the nominal interest rate will increase and the current price level will decrease c. the nominal interest rate will decrease and the current price level will increase d. both the nominal interest rate and the current price level will increase 3. In an open economy without perfect capital mobility, if political instability abroad lowers the net capital outflow function, then the real interest rate: a. rises, while the real exchange rate rises and net exports fall b. rises, while the real exchange rate falls and net exports rise c. falls, while the real exchange rate rises and net exports fall d. falls, while the real exchange rate rises and net exports rise 4. In a small open economy with a fixed exchange rate, if the government imposes an import quota, then in the short run without using the AD-AS graph: a. net exports decrease but the money supply falls and income falls b. net exports increase, the money supply increases, and income increases c. net exports are unchanged, but the money supply falls and income falls d. net exports are unchanged, the money supply is unchanged, and income is unchanged 5. In the Solow model, if a larger share of national output is devoted to investment then consumption per worker
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/07/2011 for the course ECON 381 taught by Professor Staff during the Winter '08 term at BYU.

Page1 / 6

381 Final Fall 2009 Answers - Econ 381 Fall 2009 Final Exam...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online