Economics Answers

why do economy use real GDP rether than nominal GDP to gauge economic well being

1. Imagine that the banking system received additional deposits of $100 million and that all the individual banks wish to retain their current liquidity ratio of 20%.
2. How much of the$100 Million will banks choose to lend out initially? (2mks)
3. What will happen to banks liabilities when the money that is lent out is spent and the recipients of it deposit it in their bank accounts? (2mks)
4. How much of these latest deposits will be lent out by the banks? (2mks)
5. By how much will total deposits eventually have risen, assuming that none of the additional liquidity is held outside the banking sector? (2mks)
6. How much of these extra total deposits are matched by (i) liquid assets; (ii) illiquid assets? (2mks)
7. What is the size of the bank multiplier? (3ms)
8. If one-half of any additional liquidity is held outside the banking sector, by how much less will deposits have risen compared with (d) above? (5mks)

The peanut butter manufactures are all buying equipment that can make peanut butter two times faster than before: the supply of peanut butter will

2. A person has $ 100 to spend on two goods X and Y whose respective prices are $3 and $5. (4 points).

A. Draw the budget line.

B. What happens to the original budget line if the budget falls by 25%?

C. What happens to the original budget line if the price of X doubles?

D. What happens to the original budget line if the price of Y falls to $4?

2. A person has $ 100 to spend on two goods X and Y whose respective prices are $3 and $5. (4 points).

A. Draw the budget line.

B. What happens to the original budget line if the budget falls by 25%?

C. What happens to the original budget line if the price of X doubles?

D. What happens to the original budget line if the price of Y falls to $4?

State what market structure currently exits in the US automobile market.

Explain if excess profit will exist in the long run.

Gross domestic product?

Big data come in the following forms…

a.

A and B.

b.

Computer - generated.

c.

Unstructured.

d.

Structured.

Big Data often also includes…

a.

More than simply financial information.

b.

All the above.

c.

Internal organisational data.

d.

External organisational data.

Clear my choice

Examples and visualisation tool are …

a.

Google.

b.

Power Bi.

c.

Linx.

d.

CentOS