The CPI-U for January 1977 was 58.70 and for January 1982 it was 87.20 what was the average annual compounded rate of lation for that time period? a. 8.24% b. 10.40% 9.71% 12.14% 8Whatis the Present Value of $1 received in 10 years using a 2% annual (compounded) discount rate? 0.9687 b. 1.0323 c. 0.82035 d. 1.219 If the reserve ratio is 8 percent, $1,400 of additional reserves can create up to a. $11,200 of new money b. $1,750 of new money. C. $17,500 of new money. d. $112 of new money 59 Assume when $100 of new reserves enter the banking system, the money supply ultimately increases by $625. Assume also no anks hold excess reserves and the entire money supply consists of bank deposits. If, at a point in time, reserves for all banks amount to $500, then at that same point in time, loans for all banks amount to $2,.265 b. False .Given a nominal interest rate of 8 percent, in which of the following cases would you earn the highest after-tax real interest rate? a. Inflation is 2 percent; the tax rate is 45 percent b. Inflation is 5 percent; the tax rate is 40 percent. Inflation is 4 percent; the tax rate is 30 percent dInflation is 2.5 percent; the tax rate is 50 percent 44. Which of the following is not correct? 3 Most economists agree eliminating unemployment insurance would decrease the nation's overall level of wel-being. b. Most job search in the U.S. economy takes place only with intervention by the govemment. c. The unemployment rate is an imperfect measure of a nation's overall level of economic wel-being. Ceteris paribus, countries with more generous and multi-year unemployment benefts tend to have higher unemployment rates