ECON 2030 EXAM ALL QUESTIONS
AND 100% CORRECT ANSWERS!!
Suppose a lender and a borrower agree to a fixed nominal interest rate on a loan when the
inflation rate is expected to be 3 percent. If the inflation rate actually turns out to be 5
percent over the life of the loan, everything else held constant, then the lender ____ and the
borrower _____
A. loses; loses
B. gains; gains
C. gains; loses
D. loses; gains
E. is unaffected; is unaffected
D
Suppose Henry is a 54 year old sanitation worker who has not worked for the past 6
years because his union is on strike against the city. During this period Henry has not
been paid nor has he been looking for another job. According to the BLS household
survey, Henry would be classified as
A. not in the labor force
B. employed
C. unemployed
D. not in the working age population
, B
The Fisher effect states that an increase in the _____ will cause the _____ to _____.
A. nominal interest rate; inflation rate; increase
B. nominal interest rate; real interest rate; increase
C. inflation rate; real interest rate; decrease
D. real interest rate; inflation rate; decrease
E. inflation rate; nominal interest rate; increase
E
The working age population is a ___ variable; real GDP is a ____ variable.
A. flow; stock
B. stock; flow
C. flow; flow
D. stock; stock
B
When a government declares a money to be "legal tender for all debts, private" it is
guaranteeing that the money will function as a
A. standard of deferred payment
B. means of unilateral payment
C. store of value
D. unit of account
E. medium of exchange
A
When the total value of final goods and services is calculated using current prices, the
resulting measure is referred to as
AND 100% CORRECT ANSWERS!!
Suppose a lender and a borrower agree to a fixed nominal interest rate on a loan when the
inflation rate is expected to be 3 percent. If the inflation rate actually turns out to be 5
percent over the life of the loan, everything else held constant, then the lender ____ and the
borrower _____
A. loses; loses
B. gains; gains
C. gains; loses
D. loses; gains
E. is unaffected; is unaffected
D
Suppose Henry is a 54 year old sanitation worker who has not worked for the past 6
years because his union is on strike against the city. During this period Henry has not
been paid nor has he been looking for another job. According to the BLS household
survey, Henry would be classified as
A. not in the labor force
B. employed
C. unemployed
D. not in the working age population
, B
The Fisher effect states that an increase in the _____ will cause the _____ to _____.
A. nominal interest rate; inflation rate; increase
B. nominal interest rate; real interest rate; increase
C. inflation rate; real interest rate; decrease
D. real interest rate; inflation rate; decrease
E. inflation rate; nominal interest rate; increase
E
The working age population is a ___ variable; real GDP is a ____ variable.
A. flow; stock
B. stock; flow
C. flow; flow
D. stock; stock
B
When a government declares a money to be "legal tender for all debts, private" it is
guaranteeing that the money will function as a
A. standard of deferred payment
B. means of unilateral payment
C. store of value
D. unit of account
E. medium of exchange
A
When the total value of final goods and services is calculated using current prices, the
resulting measure is referred to as
