Q4_f07 - Temple University Economics 1101 Fall, 2007 Quiz...

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Temple University Economics 1101 Fall, 2007 Quiz #4 Name __________________________________ A. Multiple Choice (2 points each) Please circle the most appropriate response. 1. Suppose that lenders want a return of 3 percent and that they expect inflation to be 5 percent. They should then charge a a. Real interest rate of 8 percent b. Real interest rate of 5 percent c. Nominal interest rate of –2 percent. d. Nominal interest rate of 8 percent 2. The effectiveness of fiscal policy depends on a. The shape of the Aggregate Demand Curve b. The shape of the Aggregate Supply Curve c. The number of people in the economy d. Whether the economy faces a recessionary or an inflationary gap 3. The ratio of the federal budget deficit to GDP in the United States is a. Greater today than at any time in its history b. Greater than the ratio of the national debt to GDP c. Inaccurate because it does not account for inflation d. Not as high as it was during World War II 4. If we include the impact of investment, the government spending multiplier will
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This note was uploaded on 04/28/2011 for the course ECON 1101 taught by Professor Rappoport during the Fall '08 term at Temple.

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Q4_f07 - Temple University Economics 1101 Fall, 2007 Quiz...

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