Economics 1B Quiz 8 S2011

Economics 1B Quiz 8 S2011 - Economics 1B Quiz #8 Department...

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Economics 1B Quiz #8 Department of Economics Professor Siegler UC Davis Spring 2011 1. Suppose that there is an exogenous fall in consumption spending, using the economic fluctuations model, net exports should ________ in the short run and _________ in the long run. A) increase; increase B) decrease; decrease C) increase; decrease D) decrease; increase 2. Collateralized-debt obligations (CDOs) are: A) a form of insurance. B) a type of mortgage-backed security. C) the primary reason for the government bailout of AIG. D) Both A and C. 3. According to the Taylor Rule, A) monetary policy was too contractionary from 2001 to 2006. B) interest rates were kept too low from 2001 to 2006. C) the Federal Reserve did not increase nominal interest rates more than one-for-for when inflation increased from 2001 to 2006. D) interest rates were kept too high from 2001 to 2006. E) Both A and D. 4. By 2010, real housing prices in the United States A) had fallen back to their long-run historical levels. B) were still well above long-run historical levels. C) had fallen below their long-run historical levels. D) were impossible to measure due to widespread foreclosures. 5. For a bank, leverage is: A) the ratio of total liabilities to net worth. B) the ratio of total assets to total liabilities. C) the difference between total assets and total liabilities. D)
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This note was uploaded on 02/07/2012 for the course ECON 1b taught by Professor Sheffrin during the Spring '07 term at UC Davis.

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Economics 1B Quiz 8 S2011 - Economics 1B Quiz #8 Department...

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