Macroeconomics Answers

What would the yield be on the 2.0 percent, $1000, 10-year Treasury bond if the market price of the bonds were

925$

 $750?

 $1,100?

Answer all three questions with showing proof of your work for full credit. Round all answers to one decimal place.

Assume that 2018 is the base year. The quantity consumed in each basket is ( 3 Cell Phones, 4 Shoes)

• What is the CPI in 2019?
• What is the CPI in 2020?
• What is the inflation rate from 2018 to 2019? 

YearPrice of Cell PhonesPrice of Shoes2018$500$852019$575$892020$625$95

assume the following economy

autonomous consumption =£3m

marginal propensity to consume= 0.8

business investment = 52

government spending =£127m

income tax rate = 40%

A. Find equilibrium size of income Y.

B. Identify whether the government runs a budget deficit or a budget surplus

 Use IS-LM diagram to explain what happens to the effectiveness of fiscal policy 

when interest elasticity of demand for money is zero, i.e. c2=O.

You are employed as a project manager for an international construction company. The director is in Australia and claims that the senior managers reporting is not up to standard and they don't have time to report

The demand for Clean-Well company’s product charges P30 per liter, how much revenue the

company will earn, and how much consumer surplus will buyers benefit. Exactly, how much will 

buyers willing to pay for a bottle with 30 liters?

Suppose a bank that is subject to a 10 percent required reserve ratio receives a new deposit of $5,000. The bank’s required reserves would increase by ______.

a.      $50

b.     $100

c.      $500

d.     $4,500

For each of the following statements explain if they are true or false:

a. As the dollar appreciates more Americans will travel abroad.

b. As the dollar appreciates American imports will fall.

c. As the dollar appreciates Disney World will see more foreign tourists.

d. As the dollar appreciates agains the Euro, European exporters of cars will benefit.

Ch19-3 - Use the extreme points from a production possibilities schedule below to draw two straight line production possibilities curves for two nations

Q.2.3 The concentration of purchases from one or a limited number of suppliers may be beneficial to the firm under certain circumstances. List any five of these circumstances and discuss how Dell benefits by using Indian call centres