Homework 4 - ECONOMICS 002 Name: _ Fall Semester 2009...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Name: ___________________________________________ Fall Semester 2009 Homework Assignment 4 TA and Time: ___________________________________________ Due October 29, 2009, in class [Note: this is later than the tentative date in the course syllabus by one lecture.] Please write your name and the meeting time of your recitation section on your homework. As room is provided for your answers, you can use these sheets if you would like. 1. [20 points] State whether each of the following statements is true or false. Very briefly explain your answer. a. When commodity money is the only type of money, a decrease in the price of the commodity serving as money is inflation. b. The same money is always used as both a unit of account and a medium of exchange at any one time in any one country. c. The smaller the reserve ratio at banks, the larger the money multiplier. d. The Federal Reserve (or any central bank) can reduce reserves by buying government bonds. 2. [30 points] consider the following table: Year Quantity of Money (billions of $s) Velocity Real GDP (billions of $s) GDP Deflator 2004 $1,375 7.113 $10,703
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 5

Homework 4 - ECONOMICS 002 Name: _ Fall Semester 2009...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online