ECON 201 FINAL EXAM MCQs

Aug 6th, 2016
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Question TRUE / FALSE 1. A side benefit of international trade is that it links national interests and increases the opportunity costs of war. True False 2. When C + Ig = GDP in a private closed economy, S = Ig and there are no unplanned changes in inventories. True False 3. The risk-free interest rate is the rate on long-term U.S. government bonds. True False 4. Bond prices and interest rates are directly or positively related. True False 5. The public debt is the accumulation of all deficits and surpluses that have occurred through time. True False 6. The M2 money supply may be larger or smaller than the M1 money supply depending on the size of small-denominated time deposit balances and Money Market Mutual Fund balances held by individuals. True False 7. Excess reserves are the amount by which required reserves exceed actual reserves. True False 8. The public debt is held as Treasury bills, Treasury notes, Treasury bonds, and U.S. savings bonds. Tr

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ECON 201 FINAL EXAM MCQsQuestionTRUE / FALSE1. A side benefit of international trade is that it links national interests and increases theopportunity costs of war.TrueFalse2. When C + Ig = GDP in a private closed economy, S = Ig and there are no unplanned changes ininventories.TrueFalse3. The risk-free interest rate is the rate on long-term U.S. government bonds.TrueFalse4. Bond prices and interest rates are directly or positively related.TrueFalse5. The public debt is the accumulation of all deficits and surpluses that have occurred throughtime.TrueFalse6. The M2 money supply may be larger or smaller than the M1 money supply depending on thesize of small-denominated time deposit balances and Money Market Mutual Fund balances heldby individuals.TrueFalse7. Excess reserves are the amount by which required reserves exceed actual reserves.TrueFalse8. The public debt is held as Treasury bills, Treasury notes, Treasury bonds, and U.S. savingsbonds.TrueFalse9. The equilibrium price level and equilibrium level of real GDP occur at the intersection of theaggregate demand curve and the aggregate supply curve.TrueFalse10. Investment is highly stable; it increases over time at a very steady rate.TrueFalseMULTIPLE CHOICE11. A recessionary expenditure gap is:A. the amount by which the full-employment GDP exceeds the level of aggregate expenditures.B. the amount by which equilibrium GDP falls short of the full-employment GDP.C. the amount by whic

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