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# PRINCIPLES OF MACROECONOMICS (ECON 2200-1) ## FALL SEMESTER 2024 **Name:** DYLAN DICK **Date:** November 19, 2024 **Instructions:** * Write your name on the exam. * On the answer form, write your last name and first name. * Write your 8-digit student ID under the Identification Number section. *...

# PRINCIPLES OF MACROECONOMICS (ECON 2200-1) ## FALL SEMESTER 2024 **Name:** DYLAN DICK **Date:** November 19, 2024 **Instructions:** * Write your name on the exam. * On the answer form, write your last name and first name. * Write your 8-digit student ID under the Identification Number section. * Bubble in the corresponding numbers and letters, and 'A' under KEY. * The exam has two parts. * Part 1: 28 multiple choice questions, each worth 2.5 points. * Part 2: 3 questions, each worth 30 points. **Part 1: Multiple Choice Questions** 1. Which of the following would most likely lead to a negative demand shock? a. An increase in the price of inputs such as steel b. A decrease in US income taxes c. A decrease in US interest rates d. An increase in net wealth e. A decrease in business confidence 2. Which of the following would unambiguously decrease consumption spending? a. An increase in real disposable income coupled with a decrease in real wealth b. An increase in real wealth coupled with more pessimistic expectations regarding future income c. A decrease in real disposable income coupled with an increase in interest rates d. An increase in consumer confidence coupled with an increase in real wealth e. Increased pessimism regarding future income coupled with a decrease in interest rates 3. If the Federal Reserve System would like to increase the short-term market interest rate, it should a. decrease money demand by increasing the discount rate b. increase money supply by decreasing the federal funds rate c. decrease money supply by buying bonds in the NYSE d. decrease the money supply by increasing the required reserve ratio e. None of the above is correct **MC:** 14 \* 2.5 = 35 **Note:** The image also contains some handwritten calculations or answers. I have focused on the multiple-choice questions and their related instructions.