All Matches

Solution Library

Expert Answer

Textbooks

Search Textbook questions, tutors and Books

Oops, something went wrong!

Change your search query and then try again

Result Not Found

Books FREE
Tutors
Study Help
Hire a Tutor
AI Study Help New

Search
Sign In
Register

study help
business
principles of macroeconomics

Questions and Answers of Principles Of Macroeconomics

=+b. Suppose that velocity is constant and the economy’s output of goods and services rises
=+a. What is the price level? What is the velocity of money?
=+1. Suppose that this year’s money supply is $500 billion, nominal GDP is $10 trillion, and real GDP is $5 trillion.
=+Why might the government be doing this?
=+What happens to nominal interest rates?
=+ What happens to prices?
=+The government of a country increases the growth rate of the money supply from 5 percent per year to 50 percent per year.
=+What determines whether an economy experiences inflation and, if so, how much?
=+e. If people hold equal amounts of currency and demand deposits and banks maintain a reserve ratio of 10 percent, what is the quantity of money?
=+d. If people hold all money as demand deposits and banks maintain a reserve ratio of 10 percent, what is the quantity of money?
=+c. If people hold equal amounts of currency and demand deposits and banks maintain 100 percent reserves, what is the quantity of money?
=+b. If people hold all money as demand deposits and banks maintain 100 percent reserves, what is the quantity of money?
=+a. If people hold all money as currency, what is the quantity of money?
=+13. The economy of Elmendyn contains 2,000$1 bills.
=+b. What quantity of bonds does the Fed need to buy or sell to accomplish the goal? Explain your reasoning.
=+a. If the Fed is using open-market operations, will it buy or sell bonds?
=+12. Assume that the reserve requirement is 20%.Also assume that banks do not hold excess reserves and there is no cash held by the public. The Federal Reserve decides that it wants to expand the
=+in reserves and the change in the money supply?
=+b. If the Fed now raises required reserves to 20 percent of deposits, what is the change
=+ What is the money supply?
=+a. What is the money multiplier?
=+11. Assume that the banking system has total reserves of $100 billion. Assume also that required reserves are 10 percent of checking deposits and that banks hold no excess reserves and households
=+What is the overall change in the money multiplier and the money supply as a result of these actions?
=+ Why might banks do so?
=+b. Now suppose the Fed lowers the reserve requirement to 5 percent, but banks choose to hold another 5 percent of deposits as excess reserves.
=+a. If the Fed sells $1 million of government bonds, what is the effect on the economy’s reserves and money supply?
=+10. Suppose that the reserve requirement for checking deposits is 10 percent and that banks do not hold any excess reserves.
=+by how much would the economy’s money supply increase?
=+b. Assume that all other banks hold only the required amount of reserves. If First National decides to reduce its reserves to only the required amount,
=+ how much in excess reserves does First National now hold?
=+a. If the Fed requires banks to hold 5 percent of deposits as reserves,
=+ Reserves $100,000 Deposits $500,000 Loans 400,000
=+ 9. Suppose that the T-account for First National Bank is as follows:Assets Liabilities
=+If one creates more, how much more does it create? Support your thinking.
=+$2,000 worth of bonds or if someone deposits in a bank $2,000 that he had been hiding in his cookie jar?
=+ 8. Assume that the reserve requirement is 5 percent. All other things equal, will the money supply expand more if the Federal Reserve buys
=+By how much does the money supply increase?
=+and if banks hold reserves equal to 10 percent of deposits, by how much does the total amount of deposits in the banking system increase?
=+ 6. You take $100 you had kept under your mattress and deposit it in your bank account. If this$100 stays in the banking system as reserves
=+Discuss another way for BSB to return to its original reserve ratio.
=+d. Why might it be difficult for BSB to take the action described in part (b)?
=+c. Explain what effect BSB’s action will have on other banks.
=+ratio by reducing the amount of loans outstanding, show its new T-account.
=+b. Now suppose that BSB’s largest depositor withdraws $10 million in cash from her account. If BSB decides to restore its reserve
=+in deposits and maintains a reserve ratio of 10 percent.a. Show a T-account for BSB.
=+ 5. Beleaguered State Bank (BSB) holds $250 million
=+from his TNB checking account. Use T-accounts to show the effect of this transaction on your uncle and on TNB. Has your uncle’s wealth changed? Explain.
=+ 4. Your uncle repays a $100 loan from Tenth National Bank (TNB) by writing a $100 check
=+Where is the Federal Reserve Bank for your district located? (Extra credit: What state has two Federal Reserve Banks?)
=+some information about the Fed. Find a map of the Federal Reserve districts. If you live in the United States, find what district you live in.
=+ 3. Go to the website of the Federal Reserve Bank of St. Louis (http://www.stlouisfed.org) to find
=+ 2. What characteristics of an asset make it useful as a medium of exchange? As a store of value?
=+ Which are not? Explain your answers by discussing each of the three functions of money.a. a U.S. pennyb. a Mexican pesoc. a Picasso paintingd. a plastic credit card
=+1. Which of the following are money in the U.S.economy?
=+ 9. Why can’t the Fed control the money supply perfectly?
=+What happens to the money supply when the Fed raises reserve requirements?
=+ 8. What are reserve requirements?
=+ What happens to the money supply when the Fed raises the discount rate?
=+ 7. What is the discount rate?
=+related to the amount of money the banking system creates?
=+How is the amount of reserves banks hold
=+ 6. Why don’t banks hold 100 percent reserves?
=+ 5. If the Fed wants to increase the money supply with open-market operations, what does it do?
=+ How is this group chosen?
=+ 4. Who is responsible for setting monetary policy in the United States?
=+they be included in the stock of money?
=+ 3. What are demand deposits and why should
=+Which kind do we use?
=+ What is fiat money?
=+ 2. What is commodity money?
=+1. What distinguishes money from other assets in the economy?
=+• If the Fed wanted to use all three of its policy tools to decrease the money supply, what would it do?
=+Describe how banks create money.
=+But don’t these open-market operations affect the money supply?
=+How can the Fed make the federal funds rate hit the target it sets?
=+What does the Federal Reserve have to do with the federal funds rate?
=+Does the federal funds rate matter only for banks?
=+What is the federal funds rate?
=+If the Fed wants to increase the supply of money, how does it usually do so?
=+What are the primary responsibilities of the Federal Reserve?
=+e. Now suppose that workers do not value the mandated benefit at all. How does this alternative assumption change your answers to parts (b) and (c)?
=+wage. In this case, how does the employer mandate affect the wage, the level of employment, and the level of unemployment?
=+d. Suppose that, before the mandate, the wage in this market was $3 above the minimum
=+and the level of employment? Are employers better or worse off? Are employees better or worse off?
=+c. If the wage is free to balance supply and demand, how does this law affect the wage
=+b. If employees place a value on this benefit exactly equal to its cost, what effect does this employer mandate have on the supply of labor?
=+a. What effect does this employer mandate have on the demand for labor? (In answering this and the following questions, be quantitative when you can.)
=+employers to provide employees some benefit(such as healthcare) that raises the cost of an employee by $4 per hour.
=+10. Suppose that Congress passes a law requiring
=+d. If for some reason wages fail to adjust to the new equilibrium levels, what would occur?
=+c. Suppose that workers in one industry cannot be quickly retrained for the other. How would these shifts in demand affect equilibrium wages both in the short run and in the long run?
=+What would happen to demand for labor in these two industries?
=+b. Suppose that one day the economy opens itself to international trade and, as a result, starts importing autos and exporting aircraft.
=+expect to happen to the wages in these two industries? How long would this process take? Explain.
=+a. If workers in these two industries require similar amounts of training, and if workers at the beginning of their careers could choose which industry to train for, what would you
=+workers have. To explore this idea, consider an economy with two industries: auto manufacturing and aircraft manufacturing.
=+ 9. Structural unemployment is sometimes said to result from a mismatch between the job skills that employers want and the job skills that
=+b. How would these changes in the manufacturing labor market affect the supply of labor in the market for service workers? What would happen to the equilibrium wage and employment in this labor
=+a. If manufacturing workers formed a union, what impact on the wages and employment in manufacturing would you predict?
=+one for manufacturing workers and one for service workers. Suppose initially that neither is unionized.

Showing 4500 - 4600 of 5913

First
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
Last

Services

Sitemap
Fun
Definitions
Become Tutor
Study Help Categories
Recent Questions
Expert Questions

Company Info

Security
Copyrights
Privacy Policy
Terms & Conditions
SolutionInn Fee
Scholarship

Get In Touch

About Us
Contact Us
Career
Jobs
FAQ
Campus Ambassador

Secure Payment

Download Our App

© 2024 SolutionInn. All Rights Reserved