Exam I - Fall, 2015
(Print Last Name, First Name)
INSTRUCTIONS: Select the best response to each question or statement and bubble in the
corresponding letter on your scantron. Each correct response is worth 3.75 points out of 150.
1. Explain why investment spending is a
volatile component of GDP
2. Discuss the concept of present value
3. Describe the role of interest rates in making
4. List the way
Money and the
1. Identify the components of money in the
2. Explain the process of multiple expansion
and contraction of deposits.
3. Describe the structure of the Federal
4. Discuss exa
a. To find the new quantities supplied, each of the quantities needs to decrease by 30%. In order to do
this, you take the original quantity and multiply it by 1 minus the decimal form of 30%. Recall that 30% is
0.3 in decimal form. Therefore
Which of the following is something that markets cannot do?
Provide unlimited goods and services
A market price: is a price at which buyers and sellers agree to exchange money for a good or service.
The table below describes the demand for bathing suits o