ECON 320: Intermediate Macroeconomics - Final Exam
possible questions with choices for revision
Changes in fiscal policy shift the
A) LM curve
B) money demand curve
C) money supply curve
D) IS curve - D) IS curve
Over the business cycle, investment spending _______ consumption spending
A) is inversely correlated with
B) is more volatile than
C) has about the same volatility as
D) is less volatile than - B) is more volatile then
In the Keynesian-cross model, if the MPC equals 0.75, then a $3 billion decrease in taxes
increases planned expenditures by _____ and increases the equilibrium level of income by
_____.
A) $3 billion; $9 billion
B) $2.25 billion; $9 billion
C) $2.25 billion; $2.25 billion
D) $3 billion; $3 billion - B) $2.25 billion; $9 billion
, The theory of liquidity preference implies that the quantity of real money balances demanded
is:
A) negatively related to both the interest rate and income.
B) positively related to both the interest rate and income.
C) positively related to the interest rate and negatively related to income.
D) negatively related to the interest rate and positively related to income. - D) negatively related
to the interest rate and positively related to income.
Okun's law is the ______ relationship between real GDP and the ______.
A) negative; unemployment rate
B) negative; inflation rate
C) positive; unemployment rate
D) positive; inflation rate - A) negative; unemployment rate
If the demand for money increases, but the Fed keeps the money supply the same, then in the
short run output will:
A) fall, and in the long run prices will remain unchanged.
B) remain unchanged, and in the long run prices will fall.
C) remain unchanged, and in the long run prices will remain unchanged.
D) fall, and in the long run prices will fall. - D) fall, and in the long run prices will fall.
possible questions with choices for revision
Changes in fiscal policy shift the
A) LM curve
B) money demand curve
C) money supply curve
D) IS curve - D) IS curve
Over the business cycle, investment spending _______ consumption spending
A) is inversely correlated with
B) is more volatile than
C) has about the same volatility as
D) is less volatile than - B) is more volatile then
In the Keynesian-cross model, if the MPC equals 0.75, then a $3 billion decrease in taxes
increases planned expenditures by _____ and increases the equilibrium level of income by
_____.
A) $3 billion; $9 billion
B) $2.25 billion; $9 billion
C) $2.25 billion; $2.25 billion
D) $3 billion; $3 billion - B) $2.25 billion; $9 billion
, The theory of liquidity preference implies that the quantity of real money balances demanded
is:
A) negatively related to both the interest rate and income.
B) positively related to both the interest rate and income.
C) positively related to the interest rate and negatively related to income.
D) negatively related to the interest rate and positively related to income. - D) negatively related
to the interest rate and positively related to income.
Okun's law is the ______ relationship between real GDP and the ______.
A) negative; unemployment rate
B) negative; inflation rate
C) positive; unemployment rate
D) positive; inflation rate - A) negative; unemployment rate
If the demand for money increases, but the Fed keeps the money supply the same, then in the
short run output will:
A) fall, and in the long run prices will remain unchanged.
B) remain unchanged, and in the long run prices will fall.
C) remain unchanged, and in the long run prices will remain unchanged.
D) fall, and in the long run prices will fall. - D) fall, and in the long run prices will fall.
