ECO 202 FINAL EXAM WITH ACTUAL
QUESTIONS AND CORRECTLY WELL
DEFINED ANSWERS LATEST 2024 – 2025
ALREADY GRADED A+
What is capital flight? - ANSWERS-When foreign investors suddenly want to take
their investments out of one country and move them to another.
Suppose GDP is $8 trillion, taxes are $1.5 trillion, private saving is $0.5 trillion, and
public saving is $0.2 trillion. Assume this economy is closed.
How much is national (or total) saving? - ANSWERS-$0.7 trillion
Suppose GDP is $8 trillion, taxes are $1.5 trillion, private saving is $0.5 trillion, and
public saving is $0.2 trillion. Assume this economy is closed.
How much is investment? - ANSWERS-$0.7 trillion
What would happen to the market for loanable funds if the government offered
tax breaks for companies building new factories? - ANSWERS-Demand increases
, Suppose GDP is $7 trillion, taxes are $2 trillion, private saving is $0.3 trillion, and
public saving is $0.1 trillion. Calculate consumption, government purchases,
national (or total) saving, and investment. Assume a closed economy. - ANSWERS-
Consumption = $4.7 trillion; Government purchases = $1.9 trillion; National (or
Total) Saving = $0.4 trillion; Investment = $0.4 trillion
T or F: Debt-to-GDP ratio typically increases during war time - ANSWERS-True
What would happen to the market for loanable funds if the government cuts the
capital gains tax? - ANSWERS-Supply increases
What would happen to the market for loanable funds if the government runs a
large budget deficit? - ANSWERS-Interest rate increases
You purchase some Microsoft stock. - ANSWERS-Financial market
You open a mutual fund with AIG. - ANSWERS-Financial intermediary
You open a savings account at the bank. - ANSWERS-Financial intermediary
You purchase US government bonds. - ANSWERS-Financial market
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