ECON252 Interim Exam #1 10-03-2013 - PINK


Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: ods such as business equipment was $10,000, inventory rose $1,000, and construction of new homes was $5,000. Consumption was $65,000 and taxes were $15,000. What was public saving? A. –$13,000 B. –$3,000 C. –$6,000 D. –$12,000 E. [None of the above] 3. Jimmy borrows $20,000 from the bank and pays back principle and interest of $21,600 one year later. If the inflation was 5% over the year, then the bank’s real return was ________ . A. 5% B. 13% C. 8% D. 10% E. [None of the above] 4. Inflation is an increase in the A. overall price level. B. amount of money in circulation. C. overall level of economic activity. D. [All of the above] 5. An increase in ________ will increase productivity. A. technology B. human capital per worker C. physical capital per worker D. natural resources per worker E. [All of the above] 6. Which of the following is FALSE? A. Borrowers lose when inflation is higher than expected. B. Loan contracts specify the nominal interest rate. C. If inflation is higher...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online