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ECON 312 Week 8 Exam

This pack of ECON 312 Week 8 Exam contains answers on the following questions:

1. An increase in aggregate demand is most likely to be caused by a decrease in (Points : 4)

Question 2. 2. (TCO 5) The long-run aggregate supply curve is (Points : 4)

Question 3. 3. (TCO 5) Which would most likely increase aggregate supply? (Points : 4)

Question 4. 4. (TCO 5) Disinflation refers to a situation where (Points : 4)

Question 5. 5. (TCO 6) If a family’s MPC is .7, it means that the family is (Points : 4)

Question 6. 6. (TCO 7) Which definition(s) of the money supply include(s) only items which are directly and immediately usable as a medium of exchange? (Points : 4)

Question 7. 7. (TCO 7) Which of the following “backs” the value of money in the United States? (Points : 4)

Question 8. 8. (TCO 7) How many members can serve on the Board of Governors of the Federal Reserve System? (Points : 4)

Question 9. 9. (TCO 7) Which group is responsible for the policy of changing the money supply? (Points : 4)

Question 10. 10. (TCO 7) Other things being equal, an expansion of commercial bank lending (Points : 4)

Question 11. 11. (TCO 7) During the financial crisis of 2007-2008, the FDIC increased deposit insurance coverage from (Points : 4)

Question 12. 12. (TCO 7) Which monetary policy tool was created in response to the financial crisis of 2007-2008? (Points : 4)

Question 13. 13. (TCO 7) The Federal Reserve could reduce the money supply by (Points : 4)

Question 14. 14. (TCO 8) Which of the following products is a leading import of the United States? (Points : 4)

Question 15. 15. (TCO 8) The principal concept behind comparative advantage is that a nation should (Points : 4)

Question 16. 16. (TCO 8) If a nation imposes a tariff on an imported product, then the nation will experience a(n) (Points : 4)

Question 17. 17. (TCO 8) A key difference between import quotas and voluntary export restraints (VERs) is that the (Points : 4)

Question 18. 18. (TCO 8) Tariffs and import quotas would benefit the following groups, except (Points : 4)

Question 19. 19. (TCO 8) A major goal of the World Trade Organization is to (Points : 4)

Question 20. 20. (TCO 9) French and German farmers wanting to buy equipment from an American manufacturer based in the U.S. will be (Points : 4)

1) Remittances of Mexican workers in the U.S. to their families in Mexico are included in the U.S. balance of payments as a debit in the section on (Points : 4)

Question 2. 2. (TCO 9) A trade deficit means a net (Points : 4)

Question 3. 3. (TCO 9) If an American can purchase 40,000 British pounds for $90,000, the dollar rate of exchange for the pound is (Points : 4)

Question 4. 4. (TCO 9) When the exchange rate between pounds and dollars moves from $2 = 1 pound to $1 = 1 pound, we say that the dollar has (Points : 4)

Question 5. 5. (TCO 9) The monetary system for conducting international trade is usually described as a system of (Points : 4)

(TCO 8) a) Explain four problems with the argument that trade protection is needed to protect American jobs. b) Describe the economic reasons why businesses use offshoring.

(TCO 6) a) Explain the tools used to pursue expansionary and contractionary fiscal policy. During which phases of the business cycle would each be appropriate? b) Explain what is meant by a built-in stabilizer and give two examples.

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