ECON 2030 : Econ 2030 Test 3 Sol N

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azuremammoth471

15 Mar 2019

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Last week the bbc reported that according to industry players, one of the biggest factors behind the decline is the recent change in the value of the australian dollar. Assuming the industry players are correct it can be concluded with certainty that the recent change has been of the. Thses centers are most effective in combating unemployment: seasonal, structural, cyclical, frictional, suppose there are two countries, the us and japan with two different currencies, the us $ and the japanese yen. Which of the following is the price of the yen: yen per , $ per yen, suppose morty a 74 year old former lawyer has retired and living in boca. Five weeks ago in order to augment his meager income, morty applied for a job as a receipt checker at the local sams club, a position he is eager to fill immediately if offered.

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5. If a clothing manufacturer purchased a computerized sewing machine from an American company, then

a. consumer spending and GDP both increase.

b. investment and GDP both increase.

c. consumer spending increases and GDP decreases.

d. investment increases and GDP decreases.

e. consumer spending and investment both increase.

6. When the production possibilities curve increases, a corresponding

a. increase would take place with aggregate demand.

b. decrease would take place with aggregate demand.

c. decrease would take place with short-run aggregate supply.

d. decrease would take place with long-run aggregate supply.

e. increase would take place with long-run aggregate supply.

7. Given a normal market demand curve for Guess watches, if the price of Guess watches decreases from $35 to $32.50, then there is a(n)

a. increase in the demand for Guess watches.

b. increase in the quantity demanded of Guess watches.

c. decrease in the demand for Guess watches.

d. decrease in the quantity demanded of Guess watches.

e. decrease in the supply of Guess watches.

8. If the U.S. dollar price of the Danish krone increases, then

a. the U.S. dollar has appreciated.

b. the Danish krone has depreciated.

c. the Danish krone has appreciated.

d. both the Danish krone and the U.S. dollar have appreciated.

e. both the Danish krone and the U.S. dollar have depreciated.

9. Suppose interest rates rise in the United States, but they don't rise in other nations. As a result of this change, which of the following is true?

I. The demand for the U.S. dollar will increase

II. The demand for the U.S. dollar will decrease

III. U.S. exports will decrease as a result of the changing value of the U.S. dollar.

IV. U.S. exports will increase as a result of the changing value of the U.S. dollar.

a. I only.

b. I and IV only.

c. I and III only.

d. II and IV only.

e. II and III only.

10. The U.S. dollar is currently trading for 1.31 Bulgarian levs (BGN) per dollar. If the exchange rate adjusts to 1.5 Bulgarian levs per 1 U.S. dollar, then

a. the BGN has appreciated.

b. the U.S. dollar has appreciated.

c. the U.S. dollar has depreciated.

d. both the BGN and the U.S. dollar have appreciated.

e. both the BGN and the U.S. dollar have depreciated.

ochreeagle465

Let the exchange rate be defined as the number of dollars per British pound. Assume there is a relatively lower rate of inflation in the U.S. relative to that of Britain.

(a.) Would this event cause the demand for the dollar to increase or decrease relative to the demand for the pound? Why?

(b.) Has the dollar appreciated or depreciated relative to the pound?

(c.) Does this change in the value of the dollar make imports cheaper or more expensive for Americans? Are American exports cheaper or more expensive for importers of U.S. goods in GreatBritain? Illustrate by showing the price of a U.S. cell phone in Britain, before and after the change in the exchange rate.

(d.) If you had a business exporting goods to Britain, and U.S.inflation fell as discussed above in this example, would you plan to expand production or cut back? Why?

copperhare643

C = 0.8(DI) + 1000	C = Consumption expenditure, DI = Disposable Income
I = 5000	I = Investment expenditure
G = 3000	G = government expenditure
X = 2000	X = spending on exports
M = 1800	M = spending on imports
DI = Y - T	Y = real GDP, T = tax revenues/>
T = 3000

Which of the following increases equilibrium real GDP by $2000
Note: you should use the expenditure multipliers from class to get your answer.

	a.	increase in government expenditure (G) by $2000 and pay for it by raising taxes (T) by $2000
	b.	increase government expenditure (G) by $2000 and pay for it by borrowing money
	c.	increase taxes (T) by $2000
	d.	decrease taxes (T) by $2000
	e.	all of the above
	f.	none of the above

greybutterfly911

ECON 2030 : Econ 2030 Test 3 Sol N

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