Spring 2016 Midterm #2
PLEASE READ: You have 75 minutes to complete the exam. Note the number of points
next to each question and use those points to allocate your time. You must justify all of
your calculations! State the formula you are using, then plug
Spring 2016 Midterm #1
PLEASE READ: You have 75 minutes to complete the exam. Note the number of points
next to each question and use those points to allocate your time. You must justify all of
your calculations! State the formula you are using, then plug
Spring 2016 Midterm #2
PLEASE READ: You have 75 minutes to complete the exam. Note the number of points
next to each question and use those points to allocate your time. You must justify all of
your calculations! State the formula you are using, then plug
Solutions to Spring 2016 Midterm #1
1. (50 points) Present values, future values, and more.
(a) (8 points) In 2015, the annual return on Millaways common stock was 26.5%.
The return in the first quarter was 10.0%, the return in the second quarter was
-5.0
Basic Finance HW #6
1. (Good practice for the midterm.) Exactly 60 months ago, you borrowed $400,000 to
buy a new house. Your original mortgage was a 30-year fixed rate mortgage offering an APR
of 4.8% with monthly compounding. Today (which is month 0), y
Basic Finance HW #7
1. Savings. You want to set aside some money for your friend Pip.
(a) You have great expectations for Pip and want to give him $250,000 a year for 20 years.
If youre able to lock in an effective annual nominal interest rate of 8%, how
Basic Finance HW #4
1. Perpetuities (Old Exam Question). A perpetuity will pay $1000 every two years, with the
first payment arriving in two years. Your savings account pays an APR of 6%, compounded
annually. What is the present value of this perpetuity?
Basic Finance HW #3
1. Compounding Returns and the Time Value of Money (an old exam question).
(a) Last year, stock IOU had monthly returns of 1.0% during January, March, May, June,
August, October, and November. IOU had monthly returns of 2.0% during Feb
Edward Kim
Prof. Zhang
Principle of Macroeconomics
How Self-Driving cars will change the labor market
Since the beginning of time, we have searched for ways to optimize. In other
words, we want to make the best out of our given resources. Throughout the h
Chapter 11
Money
Medium of Exchange
Store of value
Unit of account
Fiat Money
Money Supply
Quantity theory of
money
Deflation
Seignorage
Real wage
Central Bank
Monitary Policy
Federal Reserve Bank
Liquidity
Federal Funds Market
Federal Funds rate
Federal
Chapter 9
Market
A market is a group of economic agents who are trading a good or
service, and the rules and arrangements for trading
Market price
If all seller and buyers face the same price, it is referred to as the
market price
Perfectly competitive
1.
Chapter 9
Potential Workers
Employed
Unemployed
Labor Force
Unemployment Rate
Labor force
participation rate
Labor demand curve
Potential workers includes everyone in the general population with three
exceptions: children under 16, people on active duty i
Lab 7-9
* ECC227 Lab 7: Multiple Regression Analysis
* Instructor: Tina Letsou
* March 13, 2017
clear all
set more off
capture log close
cd L:\EC227
log using EC227_Lab7_Log.log, replace
bcuse fringe, clear
* QUESTION: How does schooling affect wage?
* PR
*comments for one line
/* */ comments for multiple lines
webuse auto, clear load the data and clear previous data sets
br browse the data
bcuse open from online
use open from working directory
Stata session
1) Data .dta (you choose where to save)
2) Do-fi
Shane Cornyn
Second Exam Version 1
Question
#
1st
Answer
D
A
D
A
A
B
C
A
B
2nd
Answe
r
D
A
D
A
A
B
C
A
D
1
2
3
4
5
6
7
8
9
D
A
D
A
A
B
C
A
D
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
C
A
C
C
C
A
C
B
C
C
D
A
C
D
D
B
C
D
A
D
C
12/16/2012
Chapter 20: The IS Curve
Describes the relationship between real interest rates and
aggregate output in the market for goods and services
Planned Expenditure and Aggregate Demand
Planned Expenditure: the total amount of spending on domestical
11/14/2012
Chapter 12:
Historical Development of the Banking System
Bank of North America, Phily 1782
Successful, began banks in America
Central Bank: government institution that has responsibility for the
amount of money and credit supplied in the eco
Shane Cornyn
First Exam Version 1
Question
#
1st
Answer
A
C
C
A
B
D
B
2nd
Answe
r
A
C
C
A
B
D
B
1
2
3
4
5
6
7
A
C
C
A
B
D
D
8
9
10
11
12
13
14
15
A
C
C
B
C
D
A
A
A
C
C
B
C
D
A
B
A
C
C
B
C
D
A
B
16
17
18
A
B
A
A
B
B
A
B
B
19
20
21
22
23
24
25
D
B
D
B
B
C
D
12/16/2012
Chapter 22: Aggregate Demand and Supply Analysis
Aggregate Demand
Demand Shocks: shift the AD curve
o Monetary policy, raises r, lowers production, left shift of AD
o Increase in G, right shift in AD
o Increase in T, lower disposable income, l
12/15/2012
Chapter 19: Quantity Theory, Inflation, and the Demand for Money
Monetary theory: study of the effect of money and monetary policy
on the economy
Quantity Theory of Money
Theory of how the nominal value of aggregate income is determined
Veloc
12/16/2012
Chapter 21: Monetary Policy and Aggregate Demand Curves
Federal Reserve and Monetary Policy
Real interest rate = nominal interest rate minus expected inflation
When Fed lowers fed funds rate, real interest rates fall
Monetary Policy Curve
MP
EC202 Macroeconomic Theory
Practice for Midterm Exam, Spring 2016
Q.1.
a) Assume you are in a closed economy. Assume that the amount of capital and the labor supply are
given and prices are fully flexible (the model of Ch. 3). Suppose the government decid
Answers to Textbook Questions and Problems
CHAPTER 14Aggregate Supply and the Short-Run Tradeoff Between Inflation and
Unemployment
Questions for Review
1.
In this chapter, we looked at two models of the short-run aggregate supply curve. Both models attem
Answers to Textbook Questions and Problems
CHAPTER 15A Dynamic Model of Economic Fluctuations
Questions for Review
1.
The equation for the dynamic aggregate supply curve is
t t1 Yt Yt t.
Recall that is a positive parameter that measures how rapidly firms
Features
There are many features that we have made for the IPhone. We want the accessibility for the IPhone to
be as easy as possible for older women.
Some of the new features the IPhone has are:
Adjustable screens for people who are near and far sighted.
Suppose you estimated a mulitple regression model to explain house prices as a function of square feet of the hous
The dependent variable was measured in dollars, e.g., the first house had a price of $187,400.
Suppose the estimated coefficient for the squ