ECON 1000 Midterm: ECON 1000 Term Test 2 2017 Winter Spring
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Instructions: this exam consists of thirty (30) multiple choice questions. There is only one correct answer: please answer all questions by marking the appropriate spaces on the computerized answer sheet. Scantrons will not be returned: if required, an english dictionary is allowed, no calculators or electronic aids permitted, all papers are to be handed in, time allowed: 1 hour (60 minutes) Econ 1010 q winter 2017 test 2 version a. Choose the one alternative that best completes the statement or answers the question: this is version a of the test. As a result, aggregate demand decreases: the government increases its expenditures. The demand for loanable funds increases, which raises the real interest rate. Investment increases: the government reduces the goods and services tax. As a result, consumption expenditure increases and aggregate demand increases: investors, anticipating an erosion of financial wealth due to inflation, decide to save more.
