Econ_1102_Practice_Midterm_2a

Econ_1102_Practice_Midterm_2a - Midterm II 75 minutes Econ...

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1 Midterm II 75 minutes Econ 1102.29: Principles of Macroeconomics Ceyhun Elgin April 4, 2007 Name: _______________________________________________ On the following pages, please show all of your work. If you need more space, use the back of the page. Clearly state where your work/answer are. Clearly highlight/circle solutions. Calculators are NOT allowed. You may leave answers as fractions. Fully label all graphs. Read each question carefully and be sure to answer all parts of every question. There should be 12 pages including the cover sheet.
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2 Question 1 (15 points) Define the following 5 terms: a) Equation of Exchange b) Velocity of Money c) Expansionary Fiscal Policy d) M2 e) Crowding Out
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3 Question 2 (15 points) Consider the following economy: Consumption: C = 25 + 0.75( Y T ) Investment: I = 3 0.25 i Government spending: G = 12 Taxes: T = 20 Money supply: M S = 80 Money demand: M D = ( Y i ) P , where i is interest rate in percentages, C is consumption, Y is nominal GDP, I is investment, G is government expenditures, T is taxes, M
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This note was uploaded on 01/28/2012 for the course ECON 1102 taught by Professor Someguy during the Fall '07 term at Minnesota.

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Econ_1102_Practice_Midterm_2a - Midterm II 75 minutes Econ...

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