answerstopracticequestions8fall2004

answerstopracticequestions8fall2004 - Answers to Practice...

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Answers to Practice Question 8 Ch. 11 and 12 1. c 2. d 3. b 4. a 5. b 6. d 7. b 8. a 9. d Ch. 13 1. c 2. b 3. c 4. c 5. b 6. b 7. c 8. d 9. c 10. d 11. d 12. b 13. d 14. c Ch. 14 1. c 2. b 3. c 4. b 5. a 6. c 7. b 8. a 9. d 10. b 11. b 12. d Ch. 15 1. b 2. b 3. b 4. a 5. b 6. d 7. a 8. d 9. a Multiple Choice Questions
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Answers to Practice Question 8 Ch. 11 and 12 10. BANKS FEDERAL RESERVE SYSTEM ASSETS LIAB. ASSETS LIAB. Reserves +$10 U.S. Gov’t Bank Reserves U.S. Gov’t Sec. +$10 +$10 Securities –$10 11. Actual reserves increase by $10 million, required reserves are unchanged, and excess reserves increase by $10 million. 12. The money supply increases by $100 million. 13. a. The quantity of money demanded is less than the supply of money by $250 billion. Thus, there exists excess supply in the money market and excess demand in the bond market. The interest rate will fall and the price of bonds will rise. b.7%
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This note was uploaded on 08/08/2008 for the course ECON 102 taught by Professor Drozd during the Spring '08 term at University of Wisconsin.

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answerstopracticequestions8fall2004 - Answers to Practice...

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