ECON 201 FINAL EXAM Answers

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TRUE / FALSE

  1. TrueFalseA side benefit of international trade is that it links national interestsand increases the opportunity costs of war.

  2. True FalseWhen C Ig GDP in a private closed economy, S Ig and thereare no unplanned changes in inventories.

  3. True FalseThe risk-free interest rate is the rate on long-term U.S. governmentbonds.

  4. True FalseBond prices and interest rates are directly or positively related.

  5. True FalseThe public debt is the accumulation of all deficits and surplusesthat have occurred through time.

  6. True FalseThe M2 money supply may be larger or smaller than the M1 moneysupply depending on the size of small-denominated time depositbalances and Money Market Mutual Fund...

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