1102F lavoie Final exam 2010

1102F lavoie Final exam 2010 - 1 1INTRODUCTION TO...

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1 1 INTRODUCTION TO MACROECONOMICS ECO 1102 F COURSE INSTRUCTOR : MARC LAVOIE FINAL EXAM , APRIL 17 TH 2009, 9:30-12:30 MNT 202, 203 Calculators, phones or any other aids are forbidden. Do not browse this exam paper until you are told to do so! Reply on the scanning sheet for part A (50 multiple choice questions). Reply in the booklet for parts B, C, D. Do not forget to write in your name on both the scanning sheet and the booklet. It is forbidden to leave the room during the first 60 minutes.
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2 Part A: Multiple-choice questions (1x50=50%). Reply on the scanning sheet, not on the questionnaire. 1. “Fiscal Policy” is the federal government’s plan for a. international trade, designed to balance exports and imports. b . spending and taxes, designed to influence the level of aggregate demand. c. manipulating the money supply and the control of interest rates. d . All of the above are correct. 2 . If wealthy Canadian consumers save most of their tax cut, this means that, compared to government spending changes, a. tax changes would have a higher multiplier effect. b . tax changes would have a weaker multiplier effect. c. government spending would have a weaker multiplier effect. d . Canadian consumers would spend all of their tax cut. 3. The Japanese economy is stuck in a recessionary gap. The proper fiscal policy could include a(n) a. decrease in taxes. b . increase in government purchases. c. increase in transfer payments. d . All of the above are correct. 4. The main idea behind supply-side tax cuts is that a. tax cuts increase spending, which increases aggregate supply. b . some tax cuts can increase aggregate supply. c. people like lower taxes and will spend more if they get them. d . it is easier to shift aggregate supply than aggregate demand. 5. Money is almost always used to quote prices. This illustrates the function of money as a a. medium of exchange. b . store of value. c. unit of account. d . commodity value. 6. The chartalist theory on the origins of money : a. Says that money is a creation of the state. b Says that money overtook barter.
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3 . c. Says that money has some value because it is based on a commodity. d . Was first proposed by Austrian economist Carl Menger 7. The largest portion of the M1+ money supply consists of a. coins in circulation. b . paper currency in circulation. c. savings deposits in banks and money market mutual funds. d . chequable deposits in banks, credit unions and caisses populaires. 8. Bankers must always trade off a. honesty and dishonesty. b . stocks and loans. c. prudence and profits. d . gold and cash. e. All of the above are correct. 9. The CDIC a. insures bank deposits for up to $100,000. b . eliminates the need for bank depositors to run to their bank when they hear bad news about the bank. c.
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This note was uploaded on 12/07/2011 for the course ECO 1102 taught by Professor Davidgray during the Winter '08 term at University of Ottawa.

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1102F lavoie Final exam 2010 - 1 1INTRODUCTION TO...

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