Ryerson University
Department of Economics
ECN 204 Midterm Winter 2013
Instructor: Dr. T.Barbiero Duration: 1 Hour 45 minutes
Name__________________________ Student #________________________________
Choose the BEST
...
Ryerson University
Department of Economics
ECN 204 Midterm Winter 2013
Instructor: Dr. T.Barbiero Duration: 1 Hour 45 minutes
Name__________________________ Student #________________________________
Choose the BEST answer and record on your scanner sheet.
1. The higher is the current level of saving:
A) the higher is the current level of investment and higher the future level of
consumption.
B) the lower is the current level of investment and lower the future level of
consumption.
C) the higher is the current level of investment and lower the future level of
consumption.
D) the lower is the current level of investment and higher the future level of
consumption.
E) The higher the slope of the MPS
2. The inequality of saving and planned investment:
A) is attributable to a low level of consumption.
B) may be of considerable significance because of the subsequent changes in income,
employment, and the price level.
C) is of no consequence because a compensating inequality of tax collections and
government spending will always occur.
D) is of no consequence because saving and actual investment will always be equal.
E) is of no consequence because they are not positively related.
3. In response to some unexpected changes in demand:
A) the economy could always adjust its production level if the prices are inflexible.
B) the economy would always produce less than what was expected if the prices of
goods and services are inflexible.
C) the economy could always produce at its optimal capacity if the prices of goods and
services are inflexible.
D) the economy could always produce at its optimal capacity if the prices of goods and
services are fully flexible
E) The self-adjusting mechanism of the
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