2025 Fall 1 BADM 7200E Exam #1 with Accurate
Solutions
Exam
#1 Status Finished
Started Saturday, September 13, 2025, 10:00 AM
Completed Saturday, September 13, 2025, 11:30 AM
Duration 1 hour 30 mins
Points 31.00/40.00
Grade 77.50 out of 100.00
Question 1
Incorrect 0.00 points out of
1.00
If the GDP deflator in 2009 equals 1.25 and nominal GDP in 2009 equals trillion, then the value of real
GDP in 2009 equals $12.5 trillion.
Select Nominal GDP = 12.5 trillion*1.25 = 15.625
one:$12 trillion
$12.5
$15
$18.75
$15.625
The correct answer is:
$15.625
Question 2
Correct 1.00 points out of 1.00
The quantitative easing policy conducted by the Federal Reserve between 2007 and 2011 resulted in a large
increase in the monetary base that was partially offset by .
Select one:
a significant increase in the reserve–deposit ratio
a significant decrease in the reserve–deposit ratio
open-market purchases
open-market sales
The correct answer is: a significant increase in the reserve–deposit ratio
,Question 3
Correct 1.00 points out of
When the Fed increases the required reserve ratio, it will , everything else held constant.
1.00
Select one:
increase the monetary base
decrease the monetary base
increase the money multiplier
decrease the money multiplier
The correct answer is: decrease the money multiplier
Question 4
Incorrect 0.00 points out of
1.00
Suppose the announced inflation rates are as follows for the selected countries: the United States = 5%; Canada =
3%; and Mexico = 4%. Everything else held constant, we would expect the nominal value of the United States
dollar to against the Canadian dollar and against the Mexican peso.
Select one:
appreciate; appreciate
appreciate; depreciate
C. depreciate; depreciate
D. depreciate; appreciate
The correct answer is: depreciate; depreciate
Question 5
Correct 1.00 points out of 1.00
To reduce the money supply, the Federal Reserve can , everything else held constant.
Select one:
conduct an open market purchase of government bonds
increase the level of the discount rate
reduce the level of the reserve requirements
reduce the interest paid on reserves held by banks.
The correct answer is: increase the level of the discount rate
, Question 6
Correct 1.00 points out of
1.00
Historically in the United States, the workers who are unemployed have been unemployed for weeks account for
the most weeks of unemployment.
less than 5
5 to 14
15 to 26
27 or more
The correct answer is: 27 or more
Question 7
Correct 1.00 points out of
1.00
If increased immigration raises the labor force, the neoclassical theory of distribution predicts that the real wage
rate will and the real rental price will .
Select one:
increase; decrease
decrease; decrease
increase; increase
decrease; increase
The correct answer is: decrease; increase
Solutions
Exam
#1 Status Finished
Started Saturday, September 13, 2025, 10:00 AM
Completed Saturday, September 13, 2025, 11:30 AM
Duration 1 hour 30 mins
Points 31.00/40.00
Grade 77.50 out of 100.00
Question 1
Incorrect 0.00 points out of
1.00
If the GDP deflator in 2009 equals 1.25 and nominal GDP in 2009 equals trillion, then the value of real
GDP in 2009 equals $12.5 trillion.
Select Nominal GDP = 12.5 trillion*1.25 = 15.625
one:$12 trillion
$12.5
$15
$18.75
$15.625
The correct answer is:
$15.625
Question 2
Correct 1.00 points out of 1.00
The quantitative easing policy conducted by the Federal Reserve between 2007 and 2011 resulted in a large
increase in the monetary base that was partially offset by .
Select one:
a significant increase in the reserve–deposit ratio
a significant decrease in the reserve–deposit ratio
open-market purchases
open-market sales
The correct answer is: a significant increase in the reserve–deposit ratio
,Question 3
Correct 1.00 points out of
When the Fed increases the required reserve ratio, it will , everything else held constant.
1.00
Select one:
increase the monetary base
decrease the monetary base
increase the money multiplier
decrease the money multiplier
The correct answer is: decrease the money multiplier
Question 4
Incorrect 0.00 points out of
1.00
Suppose the announced inflation rates are as follows for the selected countries: the United States = 5%; Canada =
3%; and Mexico = 4%. Everything else held constant, we would expect the nominal value of the United States
dollar to against the Canadian dollar and against the Mexican peso.
Select one:
appreciate; appreciate
appreciate; depreciate
C. depreciate; depreciate
D. depreciate; appreciate
The correct answer is: depreciate; depreciate
Question 5
Correct 1.00 points out of 1.00
To reduce the money supply, the Federal Reserve can , everything else held constant.
Select one:
conduct an open market purchase of government bonds
increase the level of the discount rate
reduce the level of the reserve requirements
reduce the interest paid on reserves held by banks.
The correct answer is: increase the level of the discount rate
, Question 6
Correct 1.00 points out of
1.00
Historically in the United States, the workers who are unemployed have been unemployed for weeks account for
the most weeks of unemployment.
less than 5
5 to 14
15 to 26
27 or more
The correct answer is: 27 or more
Question 7
Correct 1.00 points out of
1.00
If increased immigration raises the labor force, the neoclassical theory of distribution predicts that the real wage
rate will and the real rental price will .
Select one:
increase; decrease
decrease; decrease
increase; increase
decrease; increase
The correct answer is: decrease; increase
