ASU Econ 211 Final Exam Latest Update 2025-
2026 110 Questions and 100% Verified Correct
Answers Guaranteed A+
**(1)** are suppliers of loanable funds. The quantity supplied **(2)** when interest rates
increase. - CORRECT ANSWER: 1. Households
2. Government/Increases
**BLANK 1** are demanders of loanable funds. Quantity demanded **BLANK 2** when
interest rates increase. - CORRECT ANSWER: 1. Firms
2. Decreases
A bank is considered insolvent if - CORRECT ANSWER: Capital (equity) is less than or
equal to zero
A budget surplus occurs when what happens? - CORRECT ANSWER: Tax revenue
exceeds government expenditures.
A price ceiling on a coffee would likely cause what? - CORRECT ANSWER: A shortage
of coffee
According to the classical dichotomy in the long-run... - CORRECT ANSWER: Real
GDP and price level are determined separately.
According to the classical theory of inflation, what causes high rates of inflation? -
CORRECT ANSWER: Excessive money growth.
Aggregate demand is best interpreted as what? - CORRECT ANSWER: Expenditure
components of GDP
, All are determinants of long-run aggregate supply except for what? - CORRECT
ANSWER: The interest rate
All else constant if the government increases spending we should expect - CORRECT
ANSWER: An increase in interest rates
All else constant, an increase in private saving leads to **(1)** in interest rates and a
**(2)** in investment. - CORRECT ANSWER: 1. Decrease
2. Increase
An entity has a comparative advantage if it can produce what? - CORRECT ANSWER:
At a lower opportunity cost than another entity.
An increase in the equilibrium price of coffee could be caused by - CORRECT
ANSWER: A decrease in supply of coffee.
As income increases, consumers purchase more cars. Cars what type of good? -
CORRECT ANSWER: Normal goods
Averaged over a long period of time, what happens? - CORRECT ANSWER: Velocity is
fairly stable.
Expenditures of **WHAT** are classified as "investment"? - CORRECT ANSWER: Firms
If the economy is assumed to be closed than what? - CORRECT ANSWER: net exports
=0
If the interest rate increases... - CORRECT ANSWER: Aggregate demand decreases.
2026 110 Questions and 100% Verified Correct
Answers Guaranteed A+
**(1)** are suppliers of loanable funds. The quantity supplied **(2)** when interest rates
increase. - CORRECT ANSWER: 1. Households
2. Government/Increases
**BLANK 1** are demanders of loanable funds. Quantity demanded **BLANK 2** when
interest rates increase. - CORRECT ANSWER: 1. Firms
2. Decreases
A bank is considered insolvent if - CORRECT ANSWER: Capital (equity) is less than or
equal to zero
A budget surplus occurs when what happens? - CORRECT ANSWER: Tax revenue
exceeds government expenditures.
A price ceiling on a coffee would likely cause what? - CORRECT ANSWER: A shortage
of coffee
According to the classical dichotomy in the long-run... - CORRECT ANSWER: Real
GDP and price level are determined separately.
According to the classical theory of inflation, what causes high rates of inflation? -
CORRECT ANSWER: Excessive money growth.
Aggregate demand is best interpreted as what? - CORRECT ANSWER: Expenditure
components of GDP
, All are determinants of long-run aggregate supply except for what? - CORRECT
ANSWER: The interest rate
All else constant if the government increases spending we should expect - CORRECT
ANSWER: An increase in interest rates
All else constant, an increase in private saving leads to **(1)** in interest rates and a
**(2)** in investment. - CORRECT ANSWER: 1. Decrease
2. Increase
An entity has a comparative advantage if it can produce what? - CORRECT ANSWER:
At a lower opportunity cost than another entity.
An increase in the equilibrium price of coffee could be caused by - CORRECT
ANSWER: A decrease in supply of coffee.
As income increases, consumers purchase more cars. Cars what type of good? -
CORRECT ANSWER: Normal goods
Averaged over a long period of time, what happens? - CORRECT ANSWER: Velocity is
fairly stable.
Expenditures of **WHAT** are classified as "investment"? - CORRECT ANSWER: Firms
If the economy is assumed to be closed than what? - CORRECT ANSWER: net exports
=0
If the interest rate increases... - CORRECT ANSWER: Aggregate demand decreases.
