[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-0-en-105":3,"doc-seo-460558-105":59,"doc-detail-460558-en":130},{"code":4,"msg":5,"data":6},0,"success",[7,13,18,23,28,33,38,43,48,51,55],{"id":8,"doc_module":4,"doc_module_name":9,"category_name":10,"show_sort_weight":11,"slug":12},1,"Document","Story & Novel",90,"story-novel",{"id":14,"doc_module":4,"doc_module_name":9,"category_name":15,"show_sort_weight":16,"slug":17},2,"Literature",80,"literature",{"id":19,"doc_module":4,"doc_module_name":9,"category_name":20,"show_sort_weight":21,"slug":22},4,"Exam",70,"exam",{"id":24,"doc_module":4,"doc_module_name":9,"category_name":25,"show_sort_weight":26,"slug":27},5,"Comic",60,"comic",{"id":29,"doc_module":4,"doc_module_name":9,"category_name":30,"show_sort_weight":31,"slug":32},6,"Technology",50,"technology",{"id":34,"doc_module":4,"doc_module_name":9,"category_name":35,"show_sort_weight":36,"slug":37},7,"Healthcare",40,"healthcare",{"id":39,"doc_module":4,"doc_module_name":9,"category_name":40,"show_sort_weight":41,"slug":42},8,"Research & Report",30,"research-report",{"id":44,"doc_module":4,"doc_module_name":9,"category_name":45,"show_sort_weight":46,"slug":47},9,"Religion & Spirituality",20,"religion-spirituality",{"id":46,"doc_module":4,"doc_module_name":9,"category_name":49,"show_sort_weight":46,"slug":50},"World Cup","world-cup",{"id":52,"doc_module":4,"doc_module_name":9,"category_name":53,"show_sort_weight":52,"slug":54},10,"Lifestyle","lifestyle",{"id":56,"doc_module":4,"doc_module_name":9,"category_name":57,"show_sort_weight":24,"slug":58},19,"General","general",{"code":4,"msg":60,"data":61},"ok",{"site_id":62,"language":63,"slug":64,"title":65,"keywords":66,"description":67,"schema_data":68,"social_meta":123,"head_meta":125,"extra_data":127,"updated_unix":129},105,"en","econ-1010-principles-of-macroeconomics-exam-3-practice-test","ECON 1010 Principles of Macroeconomics - Exam 3 - Practice Test","","ECON 1010 Principles of Macroeconomics Exam #3 practice material covering core macroeconomic concepts. Section A presents multiple-choice questions on open-economy national income accounting, the interest rate and loanable funds, crowding out, the spending multiplier, MPC/MPS relationships, aggregate demand shifts, liquidity, and short-run vs long-run effects on output and price levels. Section B includes short-answer problems on loanable funds equilibrium with taxes and time value of money, investment project valuation, the Keynesian cross multiplier and GDP changes from fiscal policy, and AD-SRAS-LRAS shocks.",{"@graph":69,"@context":122},[70,84,105],{"@type":71,"itemListElement":72},"BreadcrumbList",[73,77,79,82],{"item":74,"name":75,"@type":76,"position":8},"https://docshare.wps.com","Home","ListItem",{"item":78,"name":9,"@type":76,"position":14},"https://docshare.wps.com/document/",{"item":80,"name":20,"@type":76,"position":81},"https://docshare.wps.com/document/exam/",3,{"item":83,"name":65,"@type":76,"position":19},"https://docshare.wps.com/document/econ-1010-principles-of-macroeconomics-exam-3-practice-test/460558/",{"url":83,"name":65,"@type":85,"image":86,"author":91,"headline":65,"publisher":94,"fileFormat":97,"inLanguage":63,"description":67,"dateModified":98,"datePublished":99,"encodingFormat":97,"isAccessibleForFree":100,"interactionStatistic":101},"DigitalDocument",{"url":87,"@type":88,"width":89,"height":90},"https://docshare.wps.com/thumbnails/econ-1010-principles-of-macroeconomics-exam-3-practice-test/460558.png","ImageObject",300,407,{"name":92,"@type":93},"cksankcs","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-10-07","2026-09-30",true,{"@type":102,"interactionType":103,"userInteractionCount":29},"InteractionCounter",{"@type":104},"ViewAction",{"@type":106,"mainEntity":107},"FAQPage",[108,114,118],{"name":109,"@type":110,"acceptedAnswer":111},"How do taxes affect the equilibrium real interest rate in the loanable funds model?","Question",{"text":112,"@type":113},"With a closed economy, taxes change public saving and therefore the supply of loanable funds. Lower public saving shifts the supply and changes the equilibrium real interest rate; the equilibrium is found where demand for loanable funds equals supply.","Answer",{"name":115,"@type":110,"acceptedAnswer":116},"How should you decide between the two investment projects given a 10% interest rate?",{"text":117,"@type":113},"Compute the present value of each project using the given timing of costs and benefits. Choose the project with the higher present value, reflecting the time value of money at 10%.",{"name":119,"@type":110,"acceptedAnswer":120},"If Congress cuts government spending in half, how does GDP change according to the multiplier?",{"text":121,"@type":113},"Use the income-expenditure multiplier with MPC = 0.8. A decrease in government spending reduces equilibrium real GDP by the multiplier amount, which is consistent with the graphical Keynesian cross shift in the income-expenditure model.","https://schema.org",{"og:url":83,"og:type":124,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":126,"canonical":83},"index,follow",{"doc_id":128,"site_id":62},460558,1790815015,{"code":4,"msg":5,"data":131},{"doc_id":128,"user_id":132,"nickname":92,"user_avatar":133,"doc_module":4,"category_id":19,"category_name":20,"doc_title":65,"doc_description":67,"doc_content":134,"file_id":135,"file_url":136,"file_type":137,"file_size":138,"view_count":29,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":44,"language":139,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":140,"faqs":141,"seo_title":142,"seo_description":67,"update_tm":143,"read_time":144},3985747882755,"https://ap-avatar.wpscdn.com/davatar_29158cc5080c5b710cf443261637dec0","ECON 1010 Principles of Macroeconomics  \nExam \\#3  \nSection A: Multiple Choice Questions. (30 points; 2 pts each)  \n\\#1 . In an open economy where government spending was $30 billion, consumption was $70 billion, taxes were $20 billion, and GDP was $100 billion this year, investment spending was $10 billion. As a result, there was:  \na) net capital inflow of $10 billion.  \nb) net capital outflow of $10 billion.  \nc) net capital inflow of $20 billion.  \nd) net capital outflow of $20 billion.  \n\\#2 . There is a   relationship between the amount of loanable funds demanded and the rate of interest.  \na) positive  \nb) direct  \nc) negative  \nd) both positive and negative.  \n\\#3 . Which is false? When there is an increase in  \na) the government budget deficit, the total amount of borrowing falls.  \nb) private savings, the interest rate decreases.  \nc) government budget deficit, the private investment is crowded out.  \nd) private savings, the total amount of borrowing increases.  \n\\#4 . If the marginal propensity to save (MPS) is small, it will  \na) make the spending multiplier smaller.  \nb) make the spending multiplier larger.  \nc) not affect the value of the spending multiplier.  \nd) increase the interest rate.  \n\\#5 . Alice’s disposable income increases by $1000, and she spends $600 of it. Alice’s  \na) MPS is 0.4 and she saves $400.  \nb) MPC is 0.4 and she saves $400.  \nc) MPS is 0.4 and she saves $600.  \nd) MPC is 0.6 and she consumes $400.  \n\\#6. The following table shows values of GDP, disposable income, consumption, planned investment, and planned aggregate expenditures for a hypothetical economy. The MPC is 0.8 for this economy. At which income level would there be positive unplanned investment?  \na) $140 billion  \nb) $100 billion  \nc) $80 billion  \nd) $60 billion  \n\\#7 . Aggregate demand will shift to the right, if:  \na) the aggregate price level increases.  \nb) government purchases increases.  \nc) there is an increase in taxes.  \nd) there is a decrease in the money supply.  \n\\#8. A movement from point C on AD2 to point A on AD 1 may have been the result of  \na) an increase in investment demand due to optimistic GDP forecasts.  \nb) a decrease in investment due to pessimistic GDP forecasts.  \nc) decreases in the taxes paid by businesses.  \nd) lower interest rates.  \n\\#9 . In the long run, the aggregate price level has:  \na) no effect on the quantity of aggregate output.  \nb) a positive effect on the quantity of aggregate output.  \nc) a negative effect on the quantity of aggregate output.  \nd) an impact on aggregate output but no impact on employment.  \n\\#10 . As the manager of a professional football team, Sam just offered the kicker a two-year contract that pays $2 million per year. The kicker refuses the contract, stating he wants $3 million this year. If Sam offers $3 million this year, about how much will he have to offer next year to keep the present value of the contract the same as his original offer? Assume a 10% annual interest rate.  \na) $1 million  \nb) $900,000  \nc) $808,080  \nd) $743,800  \n\\#11 . If the economy is in equilibrium at Y 1 in panel (a) and the government increases spending, the result will likely be:  \na) an increase in unemployment.  \nb) a decrease in interest rates.  \nc) inflation.  \nd) deflation.  \n\\#12 . The term liquidity means that the:  \na) asset is used in a barter exchange.  \nb) asset is used as the medium of exchange.  \nc) asset is readily convertible to cash without much loss of value.  \nd) market interest rate is too low.  \n\\#13 . If the short-run macroeconomic equilibrium is   of the economy's potential output, then there is a(n)   and the aggregate price level is expected to   .  \na) to the right; inflationary gap; fall  \nb) to the right; recessionary gap; rise  \nc) to the left; inflationary gap; fall  \nd) to the left; recessionary gap; fall  \n\\#14 . If the price level rises in the figure below, which will take place?  \na) None of the answer choices provided will take place.  \nb) AD curve","cbCaiv8wePXB7EGE","https://ap.wps.com/l/cbCaiv8wePXB7EGE","pdf",162457,"English","# Section A: Multiple Choice Questions\n## Multiple Choice 1-15\n# Section B: Short Answer Questions\n## Market for Loanable Funds and the Time Value of Money\n## Income-Expenditure Model and the Multiplier\n## AD-SRAS-LRAS Model and Macroeconomic Shocks","[{\"question\":\"How do taxes affect the equilibrium real interest rate in the loanable funds model?\",\"answer\":\"With a closed economy, taxes change public saving and therefore the supply of loanable funds. Lower public saving shifts the supply and changes the equilibrium real interest rate; the equilibrium is found where demand for loanable funds equals supply.\"},{\"question\":\"How should you decide between the two investment projects given a 10% interest rate?\",\"answer\":\"Compute the present value of each project using the given timing of costs and benefits. Choose the project with the higher present value, reflecting the time value of money at 10%.\"},{\"question\":\"If Congress cuts government spending in half, how does GDP change according to the multiplier?\",\"answer\":\"Use the income-expenditure multiplier with MPC = 0.8. A decrease in government spending reduces equilibrium real GDP by the multiplier amount, which is consistent with the graphical Keynesian cross shift in the income-expenditure model.\"}]","ECON 1010 Principles of Macroeconomics - Exam 3 - Practice Test | PDF",1790758764,23]