ECON 1120 Midterm: S08 Econ 102 Prelim 1 Makeup Solutions1
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10 points (each question is worth point): which of the following transactions would not increase u. s. gdp in 2008, new automobiles placed into inventory by ford in connecticut on mar. Answer: d: suppose boeing purchases ,000 of airplane parts to construct new airplanes. Answer: b: when commercial banks borrow from the federal reserve, the interest rate they pay is known as the, federal funds rate, reserve lending rate, discount rate, none of the above. Answer: c: suppose the cpi is 150 in 2000 and 195 in 2008. Then the overall price level has increased by what percentage from 2000 to 2008? a) 33% b) 30% c) 45% d) it cannot be determined from the information given. March 13, 2008: suppose the federal reserve buys million of government bonds from the public, and the supply of money is million before the bond purchase.
