ECON 1120 Midterm: Econ 1120_2012Fall_prelim2_Makeup_SolutionKey
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Econ 1120 intro macro fall-2012 november 7, 2012. There are two sections in this exam: part i: 15 multiple choice questions @ 3 points each, part ii: 2 short answer question (22 points) + 2 newspaper article questions (33 points, answer all questions. Total time = 90 minutes: prelim2 score counts for 25% of final grade. The fed sells securities in the open market. The fed purchases of securities in the open market. Price level increases: i , iii, and v, ii, iv and vi, i, iv and v, ii, iv and v. 4: the crowding out effect associated with expansionary fiscal policy will be relatively small when, the fed implements expansionary monetary policy. Investment is very sensitive to changes in interest rate. The one with higher income will have a ______ average propensity to consume than the one with lower income individuals: higher lower the same it depends.
