Tackle the Test: Free-Response Questions

275

  1. Question

    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
    Draw three correctly labeled graphs of the money market. Show the effect of each of the following three changes on a separate graph.

    Rubric for FRQ 1 (6 points)

    1 point: The vertical axis is labeled “Interest rate” or “r” and the horizontal axis is labeled “Quantity of money.”

    1 point: The money supply curve is vertical and labeled.

    1 point: The money demand curve is negatively sloped and labeled.

    1 point: The money demand curve shifts right.

    image

    1 point: The money demand curve shifts left.

    image

    1 point: The money demand curve shifts left.

    image
  2. Question

    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