MSU Exam 2 EC 302 Questions With
Correct Answers
Increase ||in ||Wealth ||(for ||Money ||Demand) ||- ||CORRECT ||ANSWER✔✔-Small ||Increase
Decrease ||in ||Wealth ||(for ||Money ||Demand) ||- ||CORRECT ||ANSWER✔✔-Small ||Decrease
Increase ||in ||Risk ||in ||Economy ||(for ||Money ||Demand) ||- ||CORRECT ||ANSWER✔✔-Increase
Decrease ||in ||Risk ||in ||Economy ||(for ||Money ||Demand) ||- ||CORRECT ||ANSWER✔✔-Decrease
Increase ||in ||Liquidity ||of ||Other ||Assets ||(for ||Money ||Demand) ||- ||CORRECT ||ANSWER✔✔-
Decrease
Increase ||in ||Efficiency ||of ||Payment ||Technologies ||(for ||money ||demand) ||- ||CORRECT ||
ANSWER✔✔-Decrease
Increase ||in ||Price ||level ||(for ||money ||demand) ||- ||CORRECT ||ANSWER✔✔-Increase
Increase ||in ||Real ||Income ||(for ||money ||demand) ||- ||CORRECT ||ANSWER✔✔-Decrease
Increase ||in ||expected ||inflation ||(for ||money ||demand) ||- ||CORRECT ||ANSWER✔✔-decrease
Beneficial ||Supply ||Shock ||- ||CORRECT ||ANSWER✔✔-FE ||line ||right
Adverse ||Supply ||Shock ||- ||CORRECT ||ANSWER✔✔-FE ||line ||left
, Increase ||in ||Labor ||Supply ||- ||CORRECT ||ANSWER✔✔-FE ||line ||right
Decrease ||in ||Labor ||supply ||- ||CORRECT ||ANSWER✔✔-FE ||line ||left
Increase ||in ||Capital ||Stock ||- ||CORRECT ||ANSWER✔✔-FE ||line ||right
Decrease ||in ||Capital ||Stock ||- ||CORRECT ||ANSWER✔✔-FE ||line ||left
Increase ||in ||Expected ||Future ||Output ||- ||CORRECT ||ANSWER✔✔-IS ||line ||up ||and ||right
Decrease ||in ||Expected ||Future ||Output ||- ||CORRECT ||ANSWER✔✔-IS ||line ||down ||and ||left
Increase ||in ||Wealth ||- ||CORRECT ||ANSWER✔✔-IS ||line ||up ||and ||right
LM ||curve ||up ||and ||left ||(smaller)
Decrease ||in ||Wealth ||- ||CORRECT ||ANSWER✔✔-IS ||line ||down ||and ||left
LM ||curve ||down ||and ||right ||(smaller)
Increase ||in ||Government ||Purcheses ||- ||CORRECT ||ANSWER✔✔-IS ||curve ||up ||and ||right
Decrease ||in ||Government ||Purchese ||- ||CORRECT ||ANSWER✔✔-IS ||curve ||down ||and ||left
Increase ||in ||Taxes ||(with ||no ||change ||in ||consumption) ||- ||CORRECT ||ANSWER✔✔-No ||change
Decrease ||in ||Taxes ||(with ||no ||change ||in ||consumption) ||- ||CORRECT ||ANSWER✔✔-No ||Change
Correct Answers
Increase ||in ||Wealth ||(for ||Money ||Demand) ||- ||CORRECT ||ANSWER✔✔-Small ||Increase
Decrease ||in ||Wealth ||(for ||Money ||Demand) ||- ||CORRECT ||ANSWER✔✔-Small ||Decrease
Increase ||in ||Risk ||in ||Economy ||(for ||Money ||Demand) ||- ||CORRECT ||ANSWER✔✔-Increase
Decrease ||in ||Risk ||in ||Economy ||(for ||Money ||Demand) ||- ||CORRECT ||ANSWER✔✔-Decrease
Increase ||in ||Liquidity ||of ||Other ||Assets ||(for ||Money ||Demand) ||- ||CORRECT ||ANSWER✔✔-
Decrease
Increase ||in ||Efficiency ||of ||Payment ||Technologies ||(for ||money ||demand) ||- ||CORRECT ||
ANSWER✔✔-Decrease
Increase ||in ||Price ||level ||(for ||money ||demand) ||- ||CORRECT ||ANSWER✔✔-Increase
Increase ||in ||Real ||Income ||(for ||money ||demand) ||- ||CORRECT ||ANSWER✔✔-Decrease
Increase ||in ||expected ||inflation ||(for ||money ||demand) ||- ||CORRECT ||ANSWER✔✔-decrease
Beneficial ||Supply ||Shock ||- ||CORRECT ||ANSWER✔✔-FE ||line ||right
Adverse ||Supply ||Shock ||- ||CORRECT ||ANSWER✔✔-FE ||line ||left
, Increase ||in ||Labor ||Supply ||- ||CORRECT ||ANSWER✔✔-FE ||line ||right
Decrease ||in ||Labor ||supply ||- ||CORRECT ||ANSWER✔✔-FE ||line ||left
Increase ||in ||Capital ||Stock ||- ||CORRECT ||ANSWER✔✔-FE ||line ||right
Decrease ||in ||Capital ||Stock ||- ||CORRECT ||ANSWER✔✔-FE ||line ||left
Increase ||in ||Expected ||Future ||Output ||- ||CORRECT ||ANSWER✔✔-IS ||line ||up ||and ||right
Decrease ||in ||Expected ||Future ||Output ||- ||CORRECT ||ANSWER✔✔-IS ||line ||down ||and ||left
Increase ||in ||Wealth ||- ||CORRECT ||ANSWER✔✔-IS ||line ||up ||and ||right
LM ||curve ||up ||and ||left ||(smaller)
Decrease ||in ||Wealth ||- ||CORRECT ||ANSWER✔✔-IS ||line ||down ||and ||left
LM ||curve ||down ||and ||right ||(smaller)
Increase ||in ||Government ||Purcheses ||- ||CORRECT ||ANSWER✔✔-IS ||curve ||up ||and ||right
Decrease ||in ||Government ||Purchese ||- ||CORRECT ||ANSWER✔✔-IS ||curve ||down ||and ||left
Increase ||in ||Taxes ||(with ||no ||change ||in ||consumption) ||- ||CORRECT ||ANSWER✔✔-No ||change
Decrease ||in ||Taxes ||(with ||no ||change ||in ||consumption) ||- ||CORRECT ||ANSWER✔✔-No ||Change
