Macroeconomics Answers

When and who was first to calculate the percantage and devide creeping, walking and galloping inflation? The answer to this question can automatically bring the best note for the economics exam. Is there actually an answer?

whether per capita income reflects the GDP of economy? explain

Assume that the banking system is loaned up and that any open-market purchase by the Fed directly increases reserves in the banks. If the required reserve ratio is 0.2, by how much could the money supply expand if the Fed purchased $2 billion worth of bonds?

Suppose the Fed sells $5 million worth of bonds to Econobank.

What happens to the reserves of the bank?
What happens to the money supply in the economy as a whole if the reserve requirement is 10%, all payments are made by check, and there is no net drain into currency?
How would your answer in part b be affected if you knew that some people involved in the money creation process kept some of their funds as cash?

Respond to the following question: Singapore has a saving rate that is roughly three times greater than that of the United States. Its greater saving rate has been one reason why the Singapore economy has grown faster than the U.S. economy. Suppose that if the United States increased its saving rate to, say, twice the Singapore level, U.S. growth would surpass the Singapore rate. Would that be a good idea?

If individuals remove funds from their checkable deposits and transfer them to their money market accounts, will M1 fall and M2 rise? Explain.

If a bank’s deposits equal $579 million and the required-reserve ratio is 9.5%, what dollar amount must the bank hold in reserve form?

If the Fed creates $600 million in new reserves, what is the maximum change in checkable deposits that can occur if the required-reserve ratio is 10%?

Bank A has $1.2 million in reserves and $10 million in deposits. The required-reserve ratio is 10%. If Bank A loses $200,000 in reserves, by what dollar amount is it reserves deficient?

How does the money supply change as a result of an increase in the discount rate?