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List of ECO372 Final Exam Questions. Online Business Degree.

Answers to the Final Exam in ECO 372 Principles of Macroeconomics in the Online Business Degree Program.

  1. Consider if the government instituted a 10% income tax surcharge. In terms of the AS/AD model this change should have
  2. If the depreciation of a country’s currency increases it aggregate expenditures by 20, the AD curve will
  3. Suppose that consumer spending is expected to decrease in the near future. If output is at potential output, which of the following policies is most appropriate according to the AS/AD model
  4. What tool of monetary policy will the Federal Reserve use to increase the federal funds rate from 1% to 1.25%?
  5. Suppose the money multiplier in the U.S. is 3. Suppose further that if the Federal Reserve changes the discount rate by 1 percentage point, banks change their reserves by 300. To increase the money supply by 2700 the Federal Reserve should
  6. In the short run, a trade deficit allows more consumption, but in the long run, a trade deficit is a problem because
  7. Considering an economy with a current trade deficit and considering only the direct effect on income, an expansionary monetary policy tends to
  8. When a country runs a trade deficit, it does so by


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