practice_final_sa - PRACTICE QUESTIONS, FINAL EXAM SHORT...

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PRACTICE QUESTIONS, FINAL EXAM – SHORT ANSWER 1. Show what happens when the central bank of a small open economy with fixed exchange rates tries to reduce the money supply. Also explain what happens in words. (5 points) M r M D M S Y P AD
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2. Suppose that nominal interest income is taxed at a rate of 30%. Calculate the before-tax real interest rate and the after-tax real interest rate if the nominal interest rate is 6% and the inflation rate is 1%. (2 points) 3. Suppose that a country has $120 billion of national savings, and $80 billion of domestic investment. Is this possible? Where did the other $40 billion of national savings go? (3 points) 4. In January, 2009, there were 830,000 women aged 20-24 in the labour force in Canada. The unemployment rate was 7.1% and the labour force participation rate was 76%. Calculate the number of women aged 20-24 who were employed, unemployed, and included in the adult population. (3 points) 5. In Chapter 12 we learned that government trade policies affect net exports. In Chapter 13 we learned that
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This note was uploaded on 04/08/2012 for the course ECONOMICS 1BB3 taught by Professor O'shaughnessy,b during the Winter '09 term at McMaster University.

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practice_final_sa - PRACTICE QUESTIONS, FINAL EXAM SHORT...

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