Econ_104_Macro_Final_-_2008_Winter - Econ 104...

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Econ 104 Macroeconomics Final April 16 th , 2008 The Principles of Macroeconomics Duration: 120 minutes Instructor: Wenbo Zeng Total Marks: 100 Instructions: 1. Write your name and student number on the very first page of the exam paper. 2. You may use calculator. 3. Distribution of marks: Multiple Choice Questions = 2points * 25 = 50 points Analytical Question I = 5points * 3 = 15 points Analytical Question II = 5points *3 = 15 points Analytical Question II = 4points * 5 = 20 points Please Print Your Name: __________________________ Student ID: ______________________
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Analytical Question I. The following diagrams show the determination of monetary equilibrium and the demand for investment. The economy begins with money supply M S , money demand M D , and investment demand I D . The interest rate is i 0 and investment is I 0 . M S Interest Interest Rate Rate i 0 M D I D 0 Quantity of Money 0 I 0 Investment a. Beginning at the initial equilibrium, suppose the Bank of Canada increases the money supply. What happens in the money market and what happens to desired investment
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This note was uploaded on 01/15/2012 for the course ECON 104 taught by Professor Peter during the Summer '09 term at Camosun College.

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Econ_104_Macro_Final_-_2008_Winter - Econ 104...

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