Quiz4_With_Pink_Key

# Quiz4_With_Pink_Key - Econ 252 Quiz 4 1 You are planning a...

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Econ 252 Quiz 4 1. You are planning a graduation trip to Nepal. Other things the same, if the dollar appreciates relative to the Nepalese rupee, then a. the dollar buys fewer rupees. Your purchases in Nepal will require fewer dollars. b. the dollar buys fewer rupees. Your purchases in Nepal will require more dollars. c. the dollar buys more rupees. Your purchases in Nepal will require fewer dollars. d. the dollar buys more rupees. Your purchases in Nepal will require more dollars. 2. The exchange rate is 1.5 Bosnian markas per U.S. dollar. The price of a refrigerator in Bosnia is 1,200 markas while in the U.S. it is \$1,000. The real exchange rate is a. 9/5 b. 5/4 c. 4/5 d. None of the above are correct. 3. The quantity of money has no real impact on things people really care about like whether or not they have a job. Most economists would agree that this statement is appropriate concerning a. both the short run and the long run. b. the short run, but not the long run. c. the long run, but not the short run. d. neither the long run nor the short run. 4. If P denotes the price of goods and services measured in terms of money, then a. 1/ P represents the value of money measured in terms of goods and services. b. P can be interpreted as the inflation rate. c. the supply of money influences the value of P , but the demand for money does not. d. All of the above are correct. 5. The classical dichotomy argues that changes in the money supply a. affect both nominal and real variables. b. affect neither nominal nor real variables. c. affect nominal variables, but not real variables. d.

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Quiz4_With_Pink_Key - Econ 252 Quiz 4 1 You are planning a...

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