Econ 203 Final Exam SSC Practice
Questions and Answers
Introduction to Macroeconomics (Concordia University)
, 1. If the Bank of Canada does an open market sale of $1000 of government securities, the mon
A) Decrease $1000
B) Increase $10000
C) Decrease $10000
D) Increase $5000
E) Decrease $5000
2. An example of crowding out is...
A) A decrease in government subsidies that cause an increase in private spending.
B) An increase in tariffs that causes a decrease in imports.
C) A fiscal expansion that raises interest rates and thereby lowers private investment.
D) An increase in the money supply that crowds out the issuance of privately held debt
E) A decrease in the money supply that decreases nominal GDP
3. The supply of Canadian dollars to the foreign-exchange market, which is also the demand f
A) Imports to Canada + capital outflows from Canada.
B) The Canadian government's holdings of official reserves.
C) Imports to Canada + capital inflows to Canada.
D) Exports from Canada + capital outflows from Canada.
E) Exports from Canada + capital inflows to Canada.
5. If Canadian inflation is four percent while Japanese inflation is seven percent, purchasing p
A) Appreciates by 28.
B) Appreciates by 11.
C) Depreciates by 11.
D) Depreciates by 3.
E) Appreciates by 3.
6. One reason that economists are interested in gross flows in the labour market as well as the
A) Gives us a better estimate of NAIRU.
B) Gives more insight into the amount of labour-market turnover.
C) Provides a better indication of the total number of people unemployed at any one time rath
D) Provides a good estimate of the overall level of employment.
E) Provides the only reliable way to measure cyclical unemployment.
7. Classical and modern views of the role of money in an economy differ in that...
A) Classicists argue that relative prices are determined by the supply of money, while modern
B) Unlike modern views, Classicists believe that only long-run money neutrality exists.
C) Both Classical and modern views accept long-run money neutrality, but modern views que
D) Both views accept short- and long-run money neutrality.
E) Both Classical and modern views accept short-run money neutrality, but modern views que
8. The Canadian tax and transfer system acts as an automatic stabiliser because…
Questions and Answers
Introduction to Macroeconomics (Concordia University)
, 1. If the Bank of Canada does an open market sale of $1000 of government securities, the mon
A) Decrease $1000
B) Increase $10000
C) Decrease $10000
D) Increase $5000
E) Decrease $5000
2. An example of crowding out is...
A) A decrease in government subsidies that cause an increase in private spending.
B) An increase in tariffs that causes a decrease in imports.
C) A fiscal expansion that raises interest rates and thereby lowers private investment.
D) An increase in the money supply that crowds out the issuance of privately held debt
E) A decrease in the money supply that decreases nominal GDP
3. The supply of Canadian dollars to the foreign-exchange market, which is also the demand f
A) Imports to Canada + capital outflows from Canada.
B) The Canadian government's holdings of official reserves.
C) Imports to Canada + capital inflows to Canada.
D) Exports from Canada + capital outflows from Canada.
E) Exports from Canada + capital inflows to Canada.
5. If Canadian inflation is four percent while Japanese inflation is seven percent, purchasing p
A) Appreciates by 28.
B) Appreciates by 11.
C) Depreciates by 11.
D) Depreciates by 3.
E) Appreciates by 3.
6. One reason that economists are interested in gross flows in the labour market as well as the
A) Gives us a better estimate of NAIRU.
B) Gives more insight into the amount of labour-market turnover.
C) Provides a better indication of the total number of people unemployed at any one time rath
D) Provides a good estimate of the overall level of employment.
E) Provides the only reliable way to measure cyclical unemployment.
7. Classical and modern views of the role of money in an economy differ in that...
A) Classicists argue that relative prices are determined by the supply of money, while modern
B) Unlike modern views, Classicists believe that only long-run money neutrality exists.
C) Both Classical and modern views accept long-run money neutrality, but modern views que
D) Both views accept short- and long-run money neutrality.
E) Both Classical and modern views accept short-run money neutrality, but modern views que
8. The Canadian tax and transfer system acts as an automatic stabiliser because…
