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Unformatted text preview: Introduction to Macroeconomics Allen R. Sanderson Economics 19900 Winter 2007 FOURTH HOUR / FINAL EXAMINATION Name (Please Print): ______________________________________ [41 Points Possible] Part I. Multiple Choice. Circle letter corresponding to your answer. One point each; 20 points total. 1. The one-third rule is most closely associated with: a. growth theory and Robert Solow. b. determining how important technological change is to increases in output. c. balance of payments accounts and exchange rate determination. d. how the money supply should adapt to changes in prices, output and employment. e. the relationship between the volume or growth in international trade in a country and its overall change in GDP. 2. The U.S. trade deficit is almost always larger than the U.S. current account deficit. Why? a. We borrow a lot from the Chinese and Japanese. b. The U.S. dollar is an undervalued currency. c. The U.S. usually runs a surplus in services. d. We invest less abroad than foreigners invest in the U.S. e. The Fed usually intervenes in foreign exchange markets. 3. The demand for U.S. dollars in exchange for Japanese yen will rise if: a. interest rates fall in the U.S. b. there is a recession in Japan. c. Americans develop an even stronger preference for Japanese cars relative to U.S. cars. d. prices in the U.S. rise faster than prices in Japan. e. incomes in Japan increase. 4. If a Chinese investor buys a U.S. Treasury bond, this is recorded on the U.S. balance of payments accounts as: a. an import of a service. b. an export of a good. c. a capital inflow. d. a capital outflow. e. an official reserve / settlements account entry needed to create a trade balance. 5. Which does Parkin not include in his list of factors contributing to, or things that would enhance, economic growth? a. investment in new capital b. taxing consumption c. expanding international trade d. conserving resources and strengthening environmental regulations e. improving the quality of education 6. Which of the following is not generally included in a list of prominent growth theories?...
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This test prep was uploaded on 04/07/2008 for the course ECON 199 taught by Professor Sanderson during the Fall '07 term at UChicago.
- Fall '07