E202F07ExamFinal

E202F07ExamFinal - Douglas, Fall 2007 Version A Special...

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Douglas, Fall 2007 Version A Special Codes 00000 PLEDGE: I have neither given nor received unauthorized help on this exam. SIGNED:__________________________ PRINT NAME: __________________________________ 1 Econ 202 Final Exam 1. On average over the past 50 years, the U.S. economy has grown at the rate of about a. 3 percent per year. b. -6 percent per year. c. 10 percent per year. d. 0 percent per year. 2. A bank’s assets include a. both its reserves and the deposits of its customers. b. the deposits of its customers, but not its reserves. c. its reserves, but not the deposits of its customers. d. neither its reserves nor the deposits of its customers. 3. Suppose a Big Mac costs $3 in the U.S. and 1.5 pounds in Britain. If purchasing power parity holds, what is the nominal exchange rate of the dollar? a. 1 pound per dollar b. 1/2 pound per dollar c. 2 pounds per dollar d. 2 British Big Macs per US Big Mac. 4. By the Exchange Rate Effect, an increase in the US price level causes the US interest rate to a. increase, NCO to decrease, and net exports to decrease, but AD does not shift. b. increase, NCO to decrease, net exports to decrease, and the AD curve to shift left. c. increase, NCO to increase, net exports to increase, and the AD curve to shift right. d. increase, NCO to increase, and net exports to increase, but AD does not shift. 5. If a shortage currently exists in a market we know that the current price is a. above equilibrium price, and quantity supplied is greater than quantity demanded. b. above equilibrium price, and quantity demanded is greater than quantity supplied. c. below equilibrium price, and quantity supplied is greater than quantity demanded. d. below equilibrium price, and quantity demanded is greater than quantity supplied. 6. When Ghana sells chocolate to the United States, U.S. net exports a. increase, and U.S. net capital outflow decreases. b. decrease, and U.S. net capital outflow increases. c. increase, and U.S. net capital outflow increases. d. decrease, and U.S. net capital outflow decreases. 7. Suppose a closed economy had public saving of $3 trillion and private saving of $2 trillion. What is national saving and investment in this country? a. $1 trillion, $5 trillion b. $1 trillion, $2 trillion c. $5 trillion, $5 trillion d. $5 trillion, $2 trillion 8. Marta lends money at a fixed interest rate and then inflation rises more than expected. Her real interest rate is a. lower than she’d expected, and the real value of the loan rises. b. lower then she’d expected, and the real value of the loan falls. c. higher than she’d expected, and the real value of the loan falls. d. higher than she’d expected, and the real value of the loan rises.
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Econ202 Final Exam, Fall 2007, Version A Douglas 2 9. If the reserve ratio is 10 percent, when the Fed sells $10 million dollars of bonds, bank reserves may a. increase by $10 million, causing the money supply to increase by up to $100 million.
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This note was uploaded on 01/17/2012 for the course ECON 002 taught by Professor Eudey during the Fall '08 term at UPenn.

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E202F07ExamFinal - Douglas, Fall 2007 Version A Special...

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