Eco 300, Spring 2003: Answers to the first four quizzes (Jan. 30 - Feb. 27)

Quiz #1

1. To leave them unchanged

2. $10.5 trillion

3. 6.0% (for Dec. 2002; fell to 5.7% in January)

4. 3% (= 5% - 2%)

5. the exchange rate

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Quiz #2

1. 0.7%; 2.4% for year

2. reduced consumer confidence, sagging stock market, reluctance of business to invest

3. C+I+G

4. depreciation

5. any of the following: Portugal, Luxembourg, Austria, Ireland, Netherlands (PLAIN); also (among non-euro-using countries) Sweden, United Kingdom, Norway, Denmark

6. dividends

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Quiz #3

1. chain

2. constant

3. unemployment

4. Because the Bush Administration has been short on specifics about the plan, and because of the recent turnover of Bush's economic team.

5. It fell, for the first time since the 2001 recession.

6. It rose faster than in any year since 1950.

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Quiz #4

1. population

2. 1973

3. deepening

4. Index of Consumer Confidence

5. Because stocks are seen as extremely risky of late - investors are nervous about the impending war and the continuing bear market in stocks.