An economy has a constant population. Everyone's demand for chequing deposits is

5,000 goods in total in every period. The economy has a total endowment of 10,000

goods per period. There is a total stock of unintermediated capital of 1,000 goods in

each period. Bank deposits are the only form of money in the economy. Deposits of

banks are subject to a 20 percent reserve requirement. The net real rate of return on

capital is 10 percent per period. After meeting the reserve requirement, banks invest the

remainder of all deposits into capital. Individuals do not hold capital. The fiat money

stock is $2,000 per period. Capital takes two periods to generate final returns.

21. What is this economy's price level?

(A) 0.2.

(B) 0.3.

(C) 0.4.

(D) 0.5.

22. What is the total nominal money stock, M1t?

(A) $20,000.

(B) $10,000.

(C) $2,500.

(D) $1,500.

23. What is the money multiplier?

(A) 20.

(B) 10.

(C) 5.

(D) 2.

24. What is the total (nal) capital output after two periods?

(A) 6,050.

(B) 4,840.

(C) 1,210.

(D) 1,000.

25. What is this economy's real GDP?

(A) 16,050.

(B) 14,840.

(C) 11,560.

(D) 10,000.

The next four questions involve the following situation.

An economy has 200 young people born each period. Each young person receives an

endowment of 200 goods, but nothing when middle-aged or old. There is a storage

technology and a bank. For each good put into storage in the current period, the person

receives a single unit of consumption next period (a real return of zero). In addition,

capital is available, which pays X = 1:25 two periods after it is acquired. If a person

liquidates capital after one period, then only 0.8 units of the consumption good can be

obtained. Assume that 10 percent of people want to consume only when middle-aged,

and the remainder only want to consume when old; however, people only realize their

preferences with regards to consumption when they reach middle-age.

26. How many goods does the bank hold in storage?

(A) 0.

(B) 4,000.

(C) 36,000.

(D) 40,000.

27. How many goods does the bank hold in capital?

(A) 0.

(B) 4,000.

(C) 36,000.

(D) 40,000.

28. If there is no bank run, how many goods will middle-aged people consume?

(A) 0.

(B) 4,000.

(C) 36,000.

(D) 40,000.

29. If there is no bank run, how many goods will old people consume?

(A) 0.

(B) 4,000.

(C) 36,000.

(D) 40,000.

1. You have two options for investing $2000 for five years: A) with 6% APR (compounded monthly) or B} with 6% interest (compounded annually). How much interest does each option provide? Section 6. 1/6.2 Simple and Compound Interest P Score: 15.8/21 21/21 answered X Question 15 Score on last try: 0 of 1 pts. See Details for more. > Next question You can retry this question below Find how much money needs to be deposited now into an account to obtain $9,500 (Future Value) in 6 years if the interest rate is 7.5% per year compounded annually (1 times per year). The final amount is $ 0.075 X Round your answer to 2 decimal places Question Help: DVideo Submit QuestionO QUESTION 3 Jason has $100,000 to invest in a savings account. He has two options: Option A earns 4% interest compounded quarterly, and Option B earns 3.994 interest compounded continuously. Which account will be more valuable after 10 years? O Option A O Option B QUESTION 4 These two questions Jason has $100,000 to invest in a savings account. He has two options: Option A earns 49% interest compounded quarterly Option B earns 3.99% Interest compounded continuously. How much more money will be in the more valuable account after 10 years? Send a chat Click Save and Submit to save and submit. Click Save All Answers to save all answers. Saye All OA O + 75% 9 This problem set is due Friday, October 28 in Class 1. Impact Evaluation using Regression Discontinuity Mexico City has a very large public school system, which accepts about 300, 000 stu- dents each year. Within that system 16 high schools affiliated with the Instituto Polite- nico Nacional (IPN) are considered to be elite schools. Many parents and students will probably consider that admission to an elite school promises a more successful ex- perience and higher rewards. This may be true, but there is also a substantial risk, especially for the weaker students, that they may fail in that school. And failing to complete high school - even from an elite school - is likely to be a worse outcome than completing a lower level high school. The purpose of the paper "Flourish or Fail? The Risky Reward of Elite High School Admission in Mexico City" (by Alain de Janvry. Andrew Dustan, and Elisabeth Sadoulet ) is to evaluate the rewards and risks of being admitted to one of Mexico City's elite schools. The identification strategy to enable the estimation of a causal effect is based on the admissions system. This is a system whereby . students express their choice (through a selection and ranking of 20 schools they would like to attend). . take an exam at the end of junior high school, and . are admitted in decreasing order from the student with the highest score to the one with the lowest score. Each student is assigned to the most preferred school that has seats available. Consider now the IPN elite schools and all the stuffents that requested admission to these schools. The schools admitted the best students first and then students with descending scores until they filled up all the slots in the schools. Let "cutoff" be the lowest score that they could admit. Students with scores at this level or just above were "barely admitted" while students below this level were "barely rejected" and had to go to a non-elite school. The following table records their dropout rates from high school and for those that did not drop out, their score on the final exam at the end of high school, three years later. (a) Make a graph with the grade at entrance exam and cutoff score for clite school admission on the horizontal axis and dropout rate on the vertical axis. What is the overall relationship between grade at entrance exam and dropout rate? Does it make sense? 2In New York, state-released results of an online education survey revealed that 71% of the 10,500 respondents had positive feedback about the new Common Core state standards.: (a) This survey is an example of which of the following? O experiment observational study (b) The number 71% Is which of the following? O parameter O statistic O population O sample