Version2 Name: FINAL EXAM ECONS 102 FALL 2017 Please return this questionnaire w
ID: 1128071 • Letter: V
Question
Version2 Name: FINAL EXAM ECONS 102 FALL 2017 Please return this questionnaire with your Scantron Date 1. Suppose U.S. consumers start buying more English shoes and fewer U.S. shoes. What impact will this trend have on the foreign exchange market? A) The supply of dollars will increase and the dollar will depreciate. B) The supply of dollars will decrease and the dollar will appreciate. C) U.S. demand for British pounds will increase and the dollar will appreciate. D) U.S. demand for British pounds will increase and the pound will depreciate. 2. Which of the following items is included in GDP of the U.S.? A) a household's purchase of stocks and bonds B) a household's purchase of used goods C) a farmer's purchase of a new tractor made in lowa by a German company D) All of the above are included in the GDP of the U.S. 3. If you transfer $1,000 from your savings account to your checking account: A) M1 decreases by $1,000, and M2 increases by $1,000 B) MI increases by $1,000, and M2 decreases by $1,000. C) M1 and M2 don't change. D) M1 increases by $1,000, but M2 doesn't change. 4. Crowding out occurs when A) B) C) D) government borrowing to finance a budget deficit makes interest rates rise. government borrowing to finance a budget deficit makes interest rates fall. a government budget surplus makes interest rates rise. a government budget surplus makes interest rates fall.Explanation / Answer
1. Suppose U.S. consumers start buying more English shoes and fewer U.S. shoes. The supply of U.S. dollars will increase and dollar will depreciate.
Option A
2. Included in GDP of the U.S.
Option (A) a household's purchase of stocks and bonds
3. If you transfer $1,000 from your savings account to your checking account
M1 increases by $1,000, but M2 doesn't change
Option D
4. crowding out occurs when
a) government borrowing to finance a budget deficit makes interest rates rise.
option a
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