Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help with this. Thanks! In the Extreme Keynesian short-run, following an open market purchase of securities, nominal wages will _______ and real wages

I need help with this. Thanks!

image text in transcribed
In the "Extreme Keynesian" short-run, following an open market purchase of securities, nominal wages will _______ and real wages will __ O remain the same; remain the same O decrease; decrease O increase; increase O increase; decrease Question 22 (1 point) Thirty (30) percent of Piggy Bank's assets and eighty-five (85) percent of its financial liabilities are interest sensitive. Piggy Bank has 920 thousand dollars in financial liabilities and 80 thousand dollars in bank capital. The bank is earning 5.00 percent interest on its assets and is paying 4.50 percent on its financial liabilities. The required reserve ratio for demand deposits is 10 percent and the required reserve ratio for time deposits is 5 percent. Piggy Bank's GAP equals _______ thousand dollars. A rise in interest rates of 5 basis points (i.e. interest rate increases by 0.0005 percentage points) will cause a change in Piggy Bank's profits equal to ______ thousand dollars. O -402; -201 O -422; -221 O -482; -241 O -532; -261

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Econometric Analysis

Authors: William H. Greene

5th Edition

130661899, 978-0130661890

More Books

Students also viewed these Economics questions

Question

=+4. Outline the major supporting points.

Answered: 1 week ago