Discussion+Section+Problems%2C+Lecture+_4+ANSWERS_1_

Discussion+Section+Problems%2C+Lecture+_4+ANSWERS_1_ - Econ...

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Econ 100B Macroeconomic Analysis Professor Steven Wood Discussion Section Problems from Lecture #4 A. Multiple Choice Questions . Circle the letter corresponding to the best answer. 1. Suppose there is a new invention that increases autonomous investment (in a closed economy). This would cause the desired investment curve to shift to the _____ and would cause the real interest rate to _____. a. Left; increase. b. Left; decrease. c. Right; increase. d. Right; decrease. e. Left; remain unchanged. f. Right; remain unchanged. 2. In goods market equilibrium in an open economy: a. The desired amount of exports must equal the desired amount of imports. b. The desired amount of exports must equal the desired amount of imports minus net exports. c. The desired amount of national saving must equal the desired amount of domestic investment. d. The desired amount of national saving must equal the desired amount of domestic investment plus net exports. 3. Suppose there is an increase in personal income taxes in a small open economy. This would cause the desired saving curve to shift to the _____ and would cause the real interest rate to _____. a.
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This note was uploaded on 10/18/2011 for the course ECON 100B taught by Professor Wood during the Fall '08 term at University of California, Berkeley.

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Discussion+Section+Problems%2C+Lecture+_4+ANSWERS_1_ - Econ...

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