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ECON 200 UOFA EXAM 2 LATEST 2025 ACTUAL EXAM WITH
COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS (100%
VERIFIED ANSWERS) |ALREADY GRADED A+| ||PROFESSOR
VERIFIED|| ||BRANDNEW!!!||
What determines the magnitude of the changes in price level
when central bank takes monetary policy measures that leads to
a change in the aggregate demand?
a. Changes in the money supply
b. Slope of the aggregate supply curve
c. Rate of change of interest rate
d. Total money supply in the economy - ANSWER-b. Slope of the
aggregate supply curve
The correct chain of causation illustrating the effects of monetary
policy is
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a. money, interest rates, C + I + G + (X - IM), I.
b. money, interest rates, I, C + I + G + (X - IM).
c. C + I + G + (X - IM), I, interest rates, money.
d. I, C + I + G + (X - IM), money, interest rates. - ANSWER-b.
money, interest rates, I, C + I + G + (X - IM).
Which of the following is the formula for velocity?
a. Velocity = nominal GDP/real GDP
b. Velocity = real GDP/M
c. Velocity = (P Y)/(M V)
d. Velocity = nominal GDP/M - ANSWER-d. Velocity = nominal
GDP/M
The velocity of circulation is the
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a. speed at which the multiplier takes effect.
b. speed at which money circulates.
c. speed at which tax cuts get spent.
d. rate at which money creation takes place. - ANSWER-b. speed
at which money circulates.
. If you divide the amount of nominal GDP by the stock of money,
you have computed the
a. multiplier.
b. price level.
c. velocity of circulation.
d. inflation rate. - ANSWER-c. velocity of circulation.
A look at the historical data indicates that velocity for M1
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a. has been more variable than the velocity for M2, but both have
been fairly constant for the past 65 years.
b. and M2 have both trended downward, but velocity for M2 has
been more erratic than velocity for M1.
c. has been fairly constant for the past 65 years, but velocity for
M2 has trended downward.
d. has trended upward in the past 65 years, but velocity for M2
has been more constant. - ANSWER-c. has trended upward in the
past 65 years, but velocity for M2 has trended downward.
If credit cards were suddenly ruled illegal and were no longer
used, the most likely effect would be a decrease in the
a. demand for money.
b. level of cash balances.
c. average checking account balance.
d. velocity of circulation. - ANSWER-d. velocity of circulation.
ECON 200 UOFA EXAM 2 LATEST 2025 ACTUAL EXAM WITH
COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS (100%
VERIFIED ANSWERS) |ALREADY GRADED A+| ||PROFESSOR
VERIFIED|| ||BRANDNEW!!!||
What determines the magnitude of the changes in price level
when central bank takes monetary policy measures that leads to
a change in the aggregate demand?
a. Changes in the money supply
b. Slope of the aggregate supply curve
c. Rate of change of interest rate
d. Total money supply in the economy - ANSWER-b. Slope of the
aggregate supply curve
The correct chain of causation illustrating the effects of monetary
policy is
,2|Page
a. money, interest rates, C + I + G + (X - IM), I.
b. money, interest rates, I, C + I + G + (X - IM).
c. C + I + G + (X - IM), I, interest rates, money.
d. I, C + I + G + (X - IM), money, interest rates. - ANSWER-b.
money, interest rates, I, C + I + G + (X - IM).
Which of the following is the formula for velocity?
a. Velocity = nominal GDP/real GDP
b. Velocity = real GDP/M
c. Velocity = (P Y)/(M V)
d. Velocity = nominal GDP/M - ANSWER-d. Velocity = nominal
GDP/M
The velocity of circulation is the
,3|Page
a. speed at which the multiplier takes effect.
b. speed at which money circulates.
c. speed at which tax cuts get spent.
d. rate at which money creation takes place. - ANSWER-b. speed
at which money circulates.
. If you divide the amount of nominal GDP by the stock of money,
you have computed the
a. multiplier.
b. price level.
c. velocity of circulation.
d. inflation rate. - ANSWER-c. velocity of circulation.
A look at the historical data indicates that velocity for M1
, 4|Page
a. has been more variable than the velocity for M2, but both have
been fairly constant for the past 65 years.
b. and M2 have both trended downward, but velocity for M2 has
been more erratic than velocity for M1.
c. has been fairly constant for the past 65 years, but velocity for
M2 has trended downward.
d. has trended upward in the past 65 years, but velocity for M2
has been more constant. - ANSWER-c. has trended upward in the
past 65 years, but velocity for M2 has trended downward.
If credit cards were suddenly ruled illegal and were no longer
used, the most likely effect would be a decrease in the
a. demand for money.
b. level of cash balances.
c. average checking account balance.
d. velocity of circulation. - ANSWER-d. velocity of circulation.
