Chapter_25 - YourResultsfor:"SelfStudyQuiz"...

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Your Results for: "Self-Study Quiz" Print this page Site Title: Principles of Economics, Eighth Edition Book Title: Principles of Economics, 8/e Book Author: Case/Fair Location on  Site: Chapter 25 > Self-Study Quiz Date/Time  Submitted: February 8, 2012 at 11:38 AM  (UTC/GMT) Summary of Results 40% Correct  of 40 Scored items: 16 Correct:  40% 24 Incorrect:  60% 3 questions not scored. 40 scored questions. More information about scoring 1. Which of the following statements  describes the relationship between  the goods market and the money  market? Your Answer: Income is determined in the good the money market. Correct Answer: None of the above.   Incorrect. Income has considerable influence on the demand for money in the money  market. 2. An increase in output, all else the  same, leads to: Your Answer: A decrease in the interest rate. Correct Answer: An increase in money demand.   Incorrect. The demand for money depends on income. An increase in output, with the  interest rate held constant, leads to an increase in money demand.
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3. Which of the following is a link  between the goods market and the  money market? Your Answer: None of the above. The goods ma not linked in the ways described a Correct Answer: Both a and b above.   Incorrect. Income, which is determined in the goods market, has considerable influence  on the demand for money in the money market. The interest rate, which is determined in  the money market, has significant effects on planned investment in the goods market. 4. Reducing the interest rate, ceteris  paribus, is likely to: Your Answer: Shift the supply of money curve to Correct Answer: Increase the level of planned inve   Incorrect. The money supply is independent of the interest rate level. 5. Fill in the blanks. A higher interest  rate __________ planned  investment and causes planned  aggregate expenditure to shifts  ___________. Your Answer:   Correct. A higher interest rate lowers planned investment, causing planned aggregate  expenditure to shifts downward. 6. When the interest rate rises,  planned investment falls, and 
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equilibrium output (income): Your Answer:   Correct. When the interest rate rises, planned investment (and planned aggregate  expenditure) falls, and equilibrium output (income) falls by even more than the fall in  planned investment. 7. The effects of a change in the  interest rate on equilibrium income  can be summarized as follows. Your Answer:
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This note was uploaded on 02/09/2012 for the course ECONOMY 101 taught by Professor Zaier during the Spring '11 term at Qatar University.

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Chapter_25 - YourResultsfor:"SelfStudyQuiz"...

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