In some country. the following holds Components of GDP Amount (Millions)! Consumption 880 Investment 540 Government Spending 500 Exports 480 Imports 440 What is the GDP of that country? Write your answer in millions. Your Answer; 1.960 Answer [uestion 22 (1 point) In some country, the following holds Components of GDP Amount (Millions) Consumption 900 Investment 540 Government Spending 490 Exports 430 Imports 500 Taxes 350 What is the marginal propensity to import? Your answer should be between 0 and 1 and include two decimals. Your Answer: [ I L. ._- _.U __..__. 5 ._ Question 23 (1 point) v Saved Keynes argued that, when GDP has dropped, GDP can be restored to its original level by a government spending increase that is: IO Equivalent to the drop in GDP'. C} More than the drop in GDP. (0) Less than the drop in GDP. Question 24 {1 point) ~/ Saved Country A experienced a severe drought and the harvest of rice is not good this year. Which of these measures by the Government is LEAST likely to increase the price of rice? (I) The Government reduces tariffs on imported food ()- The Government subsidizes food purchases by households (3- The Government does nothing and lets the market find a new equilibrium. despite the short term consequences on the poorest households Question 25 (1 point) A Government issues a bond that pays 1000$ in 1 year. If the price of the bond is 9705. what is the implicit interest rate that the government is paying? Provide an answer in percentage between 0 and 100. Your Answer: Answer Question 26 (1 point) What is likely to happen if a nation's government appears likely to default on its loans? [Select all relevant answers. if any) C Foreign savers are likely to sell their hands. stock and exchange their holding of the nation's currency for other safer currencies, l: The nation's currency will depreciate. C: The nominal price of foreign goods will decrease. L_ The Government is likely to be pressured into allowing the sale of physical assets (reserves. state companies, mining rights, public services) to get foreign currencies needed to make its debt payments. Question 23 (1 point) A bond buyer paid 940 for a bond that will be valued at 1000$ at maturity, in three months. What is the annualized rate Of return on this bond? Provide your answer as a percentage between 0 and 100. Your Answer: l Question 29 (1 point) '1 Saved An individual saves 100$ at the bank at an interest rate of 7%. The inflation rate is constant at 1%. What is the real interest rate on this individual's savings? Provide an answer in percentage. Your Answer: Cl Answer Question 30 [1 point) ,, Saved If Country A's banks are lending out 93% of their deposits, what is their reserve ratio? Provide an answer in percentage between 0 and 100. Your Answer: Answer Question 31 [1 point) ~/ Saved Indicate which element of a Central Bank's balance sheet is an asset and which is a liability. v Official reserves [Zl E] [E p.- Owner's equity 1_ Asset Deposits of commercial banks 2. Liability or Equity Domestic assets Currency in circulation