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ECON 200 UOFA Exam 2 Newest 2025/ 2026 Complete
150 Questions And Correct Answers (Verified
Answers) |Already Graded A+||Brand New Exam!!!
What determines the magnitude of the changes in price
level when central bank takes monetary policy measures
that leads to a change in the aggregate demand?
a. Changes in the money supply
b. Slope of the aggregate supply curve
c. Rate of change of interest rate
d. Total money supply in the economy - ANSWER-b. Slope
of the aggregate supply curve
The correct chain of causation illustrating the effects of
monetary policy is
a. money, interest rates, C + I + G + (X - IM), I.
b. money, interest rates, I, C + I + G + (X - IM).
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c. C + I + G + (X - IM), I, interest rates, money.
d. I, C + I + G + (X - IM), money, interest rates. -
ANSWER-b. money, interest rates, I, C + I + G + (X - IM).
Which of the following is the formula for velocity?
a. Velocity = nominal GDP/real GDP
b. Velocity = real GDP/M
c. Velocity = (P Y)/(M V)
d. Velocity = nominal GDP/M - ANSWER-d. Velocity =
nominal GDP/M
The velocity of circulation is the
a. speed at which the multiplier takes effect.
b. speed at which money circulates.
c. speed at which tax cuts get spent.
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d. rate at which money creation takes place. - ANSWER-b.
speed at which money circulates.
. If you divide the amount of nominal GDP by the stock of
money, you have computed the
a. multiplier.
b. price level.
c. velocity of circulation.
d. inflation rate. - ANSWER-c. velocity of circulation.
A look at the historical data indicates that velocity for M1
a. has been more variable than the velocity for M2, but
both have been fairly constant for the past 65 years.
b. and M2 have both trended downward, but velocity for
M2 has been more erratic than velocity for M1.
c. has been fairly constant for the past 65 years, but
velocity for M2 has trended downward.
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d. has trended upward in the past 65 years, but velocity for
M2 has been more constant. - ANSWER-c. has trended
upward in the past 65 years, but velocity for M2 has
trended downward.
If credit cards were suddenly ruled illegal and were no
longer used, the most likely effect would be a decrease in
the
a. demand for money.
b. level of cash balances.
c. average checking account balance.
d. velocity of circulation. - ANSWER-d. velocity of
circulation.
The efficiency of the payments' mechanism affects
a. the speed with which money can be exchanged for
other assets.
b. how quickly individual loan applications will be
approved.
ECON 200 UOFA Exam 2 Newest 2025/ 2026 Complete
150 Questions And Correct Answers (Verified
Answers) |Already Graded A+||Brand New Exam!!!
What determines the magnitude of the changes in price
level when central bank takes monetary policy measures
that leads to a change in the aggregate demand?
a. Changes in the money supply
b. Slope of the aggregate supply curve
c. Rate of change of interest rate
d. Total money supply in the economy - ANSWER-b. Slope
of the aggregate supply curve
The correct chain of causation illustrating the effects of
monetary policy is
a. money, interest rates, C + I + G + (X - IM), I.
b. money, interest rates, I, C + I + G + (X - IM).
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c. C + I + G + (X - IM), I, interest rates, money.
d. I, C + I + G + (X - IM), money, interest rates. -
ANSWER-b. money, interest rates, I, C + I + G + (X - IM).
Which of the following is the formula for velocity?
a. Velocity = nominal GDP/real GDP
b. Velocity = real GDP/M
c. Velocity = (P Y)/(M V)
d. Velocity = nominal GDP/M - ANSWER-d. Velocity =
nominal GDP/M
The velocity of circulation is the
a. speed at which the multiplier takes effect.
b. speed at which money circulates.
c. speed at which tax cuts get spent.
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d. rate at which money creation takes place. - ANSWER-b.
speed at which money circulates.
. If you divide the amount of nominal GDP by the stock of
money, you have computed the
a. multiplier.
b. price level.
c. velocity of circulation.
d. inflation rate. - ANSWER-c. velocity of circulation.
A look at the historical data indicates that velocity for M1
a. has been more variable than the velocity for M2, but
both have been fairly constant for the past 65 years.
b. and M2 have both trended downward, but velocity for
M2 has been more erratic than velocity for M1.
c. has been fairly constant for the past 65 years, but
velocity for M2 has trended downward.
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d. has trended upward in the past 65 years, but velocity for
M2 has been more constant. - ANSWER-c. has trended
upward in the past 65 years, but velocity for M2 has
trended downward.
If credit cards were suddenly ruled illegal and were no
longer used, the most likely effect would be a decrease in
the
a. demand for money.
b. level of cash balances.
c. average checking account balance.
d. velocity of circulation. - ANSWER-d. velocity of
circulation.
The efficiency of the payments' mechanism affects
a. the speed with which money can be exchanged for
other assets.
b. how quickly individual loan applications will be
approved.
