Economics and Foreign Currencies
Econ 201 Final exam – 310 points Highlight the 20 multiple choice answers and type in the short answer, essay or problems responses. Save the document and post the attachment into the assignment screen for grading. Good luck to all. Gary
Multiple Choice – 20 Questions – 6 points each question
Total of 120 points for Multiple Choice
1. If the level of aggregate expenditures is greater than real GDP, then the level of output is expected to:
a) increase b) decrease c) remain the same d) change in an unpredictable manner
2. U.S. imports create a domestic demand for foreign currencies, and the satisfaction of this demand:
a) decreases the supply of foreign currencies held by U.S. banksXX b) decreases the demand for foreign currencies held by U.S. banks c) increases the demand for foreign currencies held by U.S. banks d) increases the supply of foreign currencies held by U.S. banks
3. If a European importer can buy $10,000 for 11,100 euros, the exchange rate for the euro is:
a) 1 euro = $0.80 b) 1 euro = $0.90 c) 1 euro = $0.95 d) 1 euro = $1.11
4. Economic growth can best be portrayed as a:
a) leftward shift of the production possibilities curve b) movement from a point inside to a point outside of the production possibilities curve c) movement from a point near the vertical axis to a point near the horizontal axis on the production possibilities curve d) rightward shift of the production possibilities curve
5. The total volume of business sales in our economy is several times as large as the GDP because:
a) the GDP does not take taxes into account b) the GDP excludes intermediate transactions c) the GDP grossly understates the value of our annual output d) total sales are in money terms and GDP is always stated in real terms
6. If there is sufficient time for wage contracts to expire and nominal wage adjustments to
Multiple Choice – 20 Questions – 6 points each question
Total of 120 points for Multiple Choice
1. If the level of aggregate expenditures is greater than real GDP, then the level of output is expected to:
a) increase b) decrease c) remain the same d) change in an unpredictable manner
2. U.S. imports create a domestic demand for foreign currencies, and the satisfaction of this demand:
a) decreases the supply of foreign currencies held by U.S. banksXX b) decreases the demand for foreign currencies held by U.S. banks c) increases the demand for foreign currencies held by U.S. banks d) increases the supply of foreign currencies held by U.S. banks
3. If a European importer can buy $10,000 for 11,100 euros, the exchange rate for the euro is:
a) 1 euro = $0.80 b) 1 euro = $0.90 c) 1 euro = $0.95 d) 1 euro = $1.11
4. Economic growth can best be portrayed as a:
a) leftward shift of the production possibilities curve b) movement from a point inside to a point outside of the production possibilities curve c) movement from a point near the vertical axis to a point near the horizontal axis on the production possibilities curve d) rightward shift of the production possibilities curve
5. The total volume of business sales in our economy is several times as large as the GDP because:
a) the GDP does not take taxes into account b) the GDP excludes intermediate transactions c) the GDP grossly understates the value of our annual output d) total sales are in money terms and GDP is always stated in real terms
6. If there is sufficient time for wage contracts to expire and nominal wage adjustments to