Quiz_4_Practice

# Quiz_4_Practice - Practice Test - Post Exam II Topics...

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percent \$billions 10 20 30 40 50 60 70 1 2 3 4 5 6 7 8 Practice Test - Post Exam II Topics Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. Other things the same, if the interest rate falls, then a. firms will want to borrow more, which increases the quantity of loanable funds demanded. b. firms will want to borrow less, which decreases the quantity of loanable funds demanded. c. firms will want to borrow more, which increase the quantity of loanable funds supplied. d. firms will want to borrow less, which decreases the quantity of loanable funds supplied. Figure 32-1 ____ 2. Refer to Figure 32-1 . In the Figure shown, if the real interest rate is 2 percent, there will be a a. surplus of \$20 billion. b. surplus of \$40 billion. c. shortage of \$20 billion. d. shortage of \$40 billion. ____ 3. At a given real exchange rate, which of the following, by itself, would increase the supply of dollars in the market for foreign-currency exchange? a. foreign citizens want to buy more U.S. bonds b. U.S. citizens want to buy more foreign bonds c. foreign citizens want to buy more U.S. goods d. U.S. citizens want to buy more U.S. goods Figure 32-2

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Real Exchange Rate Quantity of Dollars 50 100 150 200 250 300 350 400
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## This note was uploaded on 08/02/2011 for the course ECON 252 taught by Professor Robertholand during the Spring '08 term at Purdue.

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Quiz_4_Practice - Practice Test - Post Exam II Topics...

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