Question 1 2 pts (02.01) Ophthalmology students compared two types of detached retina surgery to determine if patients were able to regain vision. They studied laser surgery and freezing treatment. Identify the response and explanatory variables. 0 The response variable is the type of retina surgery. and the explanatory variable is the amount of vision the patients obtained after surgery. 0 The response variable is the amount ofyision the patients obtained after surgery. and the explanatory variable is the type of retina surgery. 0 The response variable is laser surgery. and the explanatory variable is freezing treatment. 0 The response variable is freezing treatment. and the explanatory variable is the amount of vision the patients obtained after surgery. 0 The response variable is freezing treatment. and the explanatory variable is laser surgery. \fQuestion 3 [02.01) Venus's atmosphere is divided into layers including the troposphere, thermosphere, etc; The troposphere is the layerthat is closest to Venus's surface. The distance from Venus and the troposphere's sulfuric acid content have a positive associah'on. Interpret the meaning ofthe positive association with respect to the sulfuric acid content 0 As you move closer to Venus. the sulfuric acid content increases. As you move away from Venus. the sulfuric acid content decreases Q As you move away from Venus. the sulfuric acid content remains the same. 0 As you move away from Venus. the sulfuric acid content increases. 0 As you move closer to Venus. the sulfuric acid content remains the same. 2 pts Question 4 2 pts [02.01) The height of daisies with respect to number of days growing was recorded for 35 days. The correlation coefcient was calculated to be r = 0.9363. Interpret the meaning of the correlation coefcient in terms of the scenario. 0 There is a strong. positive correlation between the height of daisies and the number of days growing. 0 There is a strong. negative correlation between the height of daisies and the number of days growing. 0 There is a weak. positive correlation between the height of the daisies and the number of davs growing. 0 There is no correlation between the number of davs growing and the height of the daisies. Q There is a weak. negative correlation between the number of davs growing and the height of the daisies. Question 5 2 pts (02.01} The correlation between two scoreS X and Y equals 0.92. If both scoreS were converted to z-scores, then the correlation between the z-5core5 for X and 2-5core5 for '1' would be 0 0.92 O 0.92 O 0.03 O 0.08 O 0.0 \fQuestion 15 [04.06 MC] Which of the following accurately compares discretionary scal policy and monetary policy? 0 They both directly impact the aggregate demand. while only monetary policy can ever affect the aggregate supply in the economy. 0 They both suffer from a lag between the problem. its recognition. and the impact of a policy remedy. 0 Monetary policy can be yery controyersial. while discretionary scal policy is generally not subject to politics. 0 Fiscal policy deals with the amount of currency available. while monetary policy is made up of goyernment spending and taxing. 0 Fiscal policy deals with aggregate supply. and monetary policy addresses aggregate demand. 2 pts Question 16 2 pts [04.07 LC] The supply of loanable funds is ________ because households save more at higher interest rates, while the demand for loanable funds is ________ because rms prefer to borrow at lower interest rates. 0 upward sloping: downward sloping 0 vertical line: upward sloping O downward sloping; upward sloping O downward sloping: horizontal line 0 horizontal line; downward sloping Question 13 2 pts {04.07 LC] The equilibrium in the market of loanable funds determines the 0 real interest rate and quantity of loanable funds 0 nominal interest rate and quantity of money supply 0 nominal interest rate and quantity of leanable funds 0 real interest rate and demand for money 0 real interest rate and supply of goods and services Question 19 2 pts (04.07 MC] An increase in real interest rates would correspond to what situation in the loanable funds market? 0 Business investment being less than national savings 0 Supply exceeding demand 0 Lending exceeding borrowing 0 Quantity supplied exceeding quantity demanded 0 Quantity demanded exceeding quantity supplied Question 6 2 pts (04.03 MC] Which of the following statement shows the difference between the monetary aggregates M1 and M2? 0 M1 includes the monetary base. travelers' checks, and demand deposits. while M2 only includes the money in circulation. 0 M1 includes only the money in circulation. while M2 is composed of savings accounts. 0 M1 includes the monetary base and travelers' checks, while M2 includes savings deposits. 0 M1 includes the monetary base. travelers' checks, and demand deposits, while M2 includes M1, time deposits, and savings deposits. 0 M1 includes only travelers' checks. while M2 includes M'lr market shares, and savings deposits. Question 7 2 pts [04.04 MC] Assume that the required reserve ratio is 10 percent. If excess reserves are $5 million and the circulating currency is $25 million, the maximum possible value for M1 is O $5.5 million 0 $30 million 0 $75 million 0 $250 million 0 $255 million Question 8 [04.04 MC] Use the data table to answer the following question. Assets [billion $1 Total reserves 3,000 Loan 15,000 Liabilities l{billion $1 Deposits 18,000 Total 13.000 Total 18,000 2 pts Assume the required reserve ratio to be 10%. Is the bank holding any excess reserve? If so, then what is the magnitude of the excess reserve? O No. the bank is not holding any.r excess reserve. O Yes. the bank is holding an excess reserve of $1.200 billion. O Yes. the bank is holding an excess reserve of $1.260 billion. O Yes. the bank is holding an excess reserve of $1.800 billion. O Yes. the bank is holding an excess reserve of $1.860 billion \fQuestion 11 2 pts (04.05 MC] An increase in the money multiplier from a value of 2.3 to 2.5 leads to an increase in the money supply. Which one of the following holds true in response to this change? 0 The nominal interest rate will decrease. 0 Consumption expenditure will fall. 0 The nominal interest rate will increase. 0 Aggregate output will fall. 0 The general price level will fall_ Question 12 2 pts (04.05 MC] Use the graph to answer the question that follows. MS MS Interest Rate MD Quantity Which of the following would explain the shift in the money market shown above? O The required reserve ratio increasing 0 The Federal Reserve purchasing government bonds 0 A signicant increase in business investment 0 A price level increase across the economv 0 An inflationary gap in the economv Question 14 2 pts (04.06 MC] Suppose the reserve requirement is 10% with no excess reserves held with banks Whatwill the change in money supply be if the Fed purchases bonds worth $500 million from banks? 0 It will increase by $5 billion. 0 It will increase by $500 million. 0 It will decrease by $5 billion. 0 It will decrease by $1 billion. 0 It will remain unchanged