ECON122 Macroeconomics

Q1. If the Canadian government increases consumption taxes and decreases the government expenditures, then

A. The real interest rate increases and the investment decreases

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B. The real interest rate decreases and the investment increases

C. The real interest rate increases and the investment increases

D. The real interest rate decreases and the investment decreases

 

Q3. If new tariffs restrictions are made on imports

A.

 NX curve would shift to the right side and real exchange rate ? increases.

B.

 NX curve would shift to the left side and real exchange rate ? increases.

C.

 NX curve would shift to the right side and real exchange rate ? decreases.

D.

 NX curve would shift to the left side and real exchange rate ? decreases.

 

Q4. Which one is considered as money

A. Bank cheque

B. A subway token in a subway system

C. Credit cards

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