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Macroeconomics
A. Suppose the government decides to pursue an expansionary fiscal policy. Within the AD-AS framework, what will be the impact on the economy?
1. Aggregate supply in the economy will decrease at various price levels
2. Aggregate demand in the economy will decrease at various price levels
3. Total production and employment will increase, while inflation decrease
4. Real GDP, the general level of prices and employment will increase
1. Aggregate supply in the economy will decrease at various price levels
2. Aggregate demand in the economy will decrease at various price levels
3. Total production and employment will increase, while inflation decrease
4. Real GDP, the general level of prices and employment will increase
Macroeconomics
A. Unemployment can decrease if....
1. There is an economic recession
2. Education system improve
3. Investment spending increase
4. Aggregate demand increase
B. Aggregate spending will increase if...
1. Real wealth falls
2. Interest rate falls
3. Consumption falls
4. Investment falls
1. There is an economic recession
2. Education system improve
3. Investment spending increase
4. Aggregate demand increase
B. Aggregate spending will increase if...
1. Real wealth falls
2. Interest rate falls
3. Consumption falls
4. Investment falls
Macroeconomics
A. To boost economic growth the government is likely to...
1. Reduce personal income tax
2. Increase taxes
3. Provide incentives to save ( e.g. tax-free investment )
4. Increase minimum wages in the private sector
B. Inflation is likely to....
1. Reduce the cost of living
2. Raise the standard of living
3. Reduce the purchasing power of a currency
4. Increase the purchasing power of a currency
1. Reduce personal income tax
2. Increase taxes
3. Provide incentives to save ( e.g. tax-free investment )
4. Increase minimum wages in the private sector
B. Inflation is likely to....
1. Reduce the cost of living
2. Raise the standard of living
3. Reduce the purchasing power of a currency
4. Increase the purchasing power of a currency
Macroeconomics
which of the following statements are true?
a) there is no need for money in traditional economy
b)money is the pillar stone of the price mechanism
c)in a mixed economy money is of only limited importance
d) in the socialist system money is seen as an evil because it facilitated accumulation of wealth.
a) there is no need for money in traditional economy
b)money is the pillar stone of the price mechanism
c)in a mixed economy money is of only limited importance
d) in the socialist system money is seen as an evil because it facilitated accumulation of wealth.
Macroeconomics
Contrast the policy implications in the classical and keynesian IS-LM model
Macroeconomics
what is the inherent risk of fractional reserve banking
Macroeconomics
If currency held outside banks is $200 billion and M1 is $600 billion, do we know for sure what Checkable Deposits (DD) equal? Why/why not?
Macroeconomics
Currency held outside banks is $400 billion, DD are $350 billion, traveler's checks (TC) are $2 billion, and money market mutual funds (retail) are $100 billion. What does M1 equal?
Macroeconomics
A bank currently has $100 million DD, $4 million in reserves, and $8 million in securities. If the r is 10 %, is the bank meeting its legal R? Explain.
Macroeconomics
A bank's assets are $90 million, and its liabilities are $71 million. Its assets increase by 10 percent, and its liabilities increase by 6 percent. What is
the percentage change in the bank's capital, or net worth?
the percentage change in the bank's capital, or net worth?
