BADM 7200| Exam 1 Quiz | with complete solution| Updated | RATED A+| 100% CORRECT | Louisiana State University

9/15/25, 2:12 PM Exam #1: Attempt review | LSU Moodle 4.5




Home / My Courses / 2025 Fall 1 BADM 7200E for Faik Koray (Online) / Exam #1





Exam #1

Status Finished
Started Saturday, September 13, 2025, 10:00 AM
Completed Saturday, September 13, 2025, 11:30 AM
Duration 1 hour 30 mins
Points 31.00/40.00
Grade 77.50 out of 100.00




Question 1
Incorrect 0.00 points out of 1.00



If the GDP deflator in 2009 equals 1.25 and nominal GDP in 2009 equals _____ trillion, then the value of real
GDP in 2009 equals $12.5 trillion.

Select one:

A. $12
B. $12.5
C. $15 
D. $18.75
E. $15.625




The correct answer is:
$15.625 




Question 2
Correct 1.00 points out of 1.00


The quantitative easing policy conducted by the Federal Reserve between 2007 and 2011 resulted in a
large increase in the monetary base that was partially offset by _____.

Select one:

A. a significant increase in the reserve–deposit ratio 
B. a significant decrease in the reserve–deposit ratio
C. open-market purchases
D. open-market sales



The correct answer is: a significant increase in the reserve–deposit ratio




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Question 3
Correct 1.00 points out of 1.00


When the Fed increases the required reserve ratio, it will _____, everything else held constant.

Select one:

A. increase the monetary base
B. decrease the monetary base
C. increase the money multiplier
D. decrease the money multiplier 



The correct answer is: decrease the money multiplier




Question 4
Incorrect 0.00 points out of 1.00



Suppose the announced inflation rates are as follows for the selected countries: the United States = 5%;
Canada = 3%; and Mexico = 4%. Everything else held constant, we would expect the nominal value of the
United States dollar to ____ against the Canadian dollar and _____ against the Mexican peso.

Select one:

A. appreciate; appreciate
B. appreciate; depreciate
C. depreciate; depreciate
D. depreciate; appreciate 



The correct answer is: depreciate; depreciate




Question 5
Correct 1.00 points out of 1.00


To reduce the money supply, the Federal Reserve can _____, everything else held constant.

Select one:

A. conduct an open market purchase of government bonds
B. increase the level of the discount rate 
C. reduce the level of the reserve requirements
D. reduce the interest paid on reserves held by banks.



The correct answer is: increase the level of the discount rate




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Question 6
Correct 1.00 points out of 1.00


Historically in the United States, the workers who are unemployed have been unemployed for _____ weeks
account for the most weeks of unemployment. 

a. less than 5

b. 5 to 14

c. 15 to 26

d. 27 or more 




The correct answer is:
27 or more




Question 7
Correct 1.00 points out of 1.00



If increased immigration raises the labor force, the neoclassical theory of distribution predicts that the real
wage rate will _____ and the real rental price will _____.

Select one:

A. increase; decrease
B. decrease; decrease
C. increase; increase
D. decrease; increase  




The correct answer is: decrease; increase




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