ECON 1010 Study Guide - Midterm Guide: Real Interest Rate, Money Creation, Potential Output

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16 Oct 2018
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Faculty of liberal arts and professional studies department of economics. ______________________________________: make sure to print your name, student number and sign the sheet above. All questions are multiple choice format: for multiple choice answers, no work needs to be shown. The full marks will be granted if the best answer is circled and zero otherwise: good luck! Choose the one alternative that best completes the statement or answers the question. ________: decrease; increase, increase; decrease, decrease; decrease, increase; increase, decrease; do not change, suppose that a country has billion in bank reserves, billion in currency held by the public, and billion in bank deposits. If the demand for canadian dollars temporarily increases, to maintain the target exchange rate, the. Its real interest rate without foreign borrowing is. ________ the world real interest rate: either higher than or equal to, higher than, equal to, not comparable to, lower than.