Homework 3: Answer Key ECON 4721: Money and Banking, Fall 2009
Problems 1-5: Choose the best answer. Explanation is not required. The condition that states that the domestic interest rate equals the foreign interest rate minus the expected appreciation of
Econ 4721: Money and Banking, Fall 2009 Homework 1 Answer Key Problem 1 (a) A feasible consumption allocation for this economy is two sequences, cfw_c1,t and cfw_c2,t for t = 1, 2, . . . satisfying: Nt c1,t + Nt1 c2,t Nt y1 + Nt1 y2 Other acceptable con
Econ 4721: Money and Banking, Fall 2009 Homework 2 Answer Key
1
Problem 1. Ination
Consider an overlapping generations model in which consumers live for two periods. The number of people born in each generation grows in each period, according to Nt = nNt1
Midterm Practice Problems- Answer Key
Econ 4721: Money and Banking, Fall 2009 Problem 3 Government expenses are some number g > 0 per old person. These expenses do not directly aect the consumer in any way. The government keeps the money supply constant,
Homework 4 - Answer Key ECON 4721: Money and Banking, Fall 2009
1. The regulatory system that has evolved in the United States whereby banks are regulated at the state level, the national level, or both, is known as a A) bilateral regulatory system. B) ti
Practice Questions for Final - Answer Key Econ 4721: Money and Banking, Fall 2009 Question 3: Money Stock Fluctuations
Suppose there is a permanent decrease in transaction costs as represented by . Find its eect on s , the price level, the deposit-to-curr
ECON 4721
February 7, 2017
Homework 1
Problem 1
A constant population: N = 200.
Endowment of consumption goods: y=10 when young, and y=0 when old.
1. What is the equation for the feasible set of this economy? Portray the feasible set on a graph.
With ar
ECON 4721 - Summer 2016
Department of Economics
University of Minnesota
Problem Set 1
Due Date: Thursday June 30, at the
beginning class.
5 points bonus if the homework solutions are typed.
Problem 1 (25 points)
Consider an economy with a constant rate of
Problem 2: Unconventional Monetary Policies
On December 3rd, the European Central Bank decided to reinforce its expansionary
monetary policy by lowering key interest rates and reinforcing their asset purchase
programme (APP) (increased its duration, reinv
ECON4721
February 28, 2017
Problem Set #2
Problem 1: Exercise 3.4 (pg. 65)
a. No, the trading value of gold cannot exceed , because has the limiting value. The
marginal rate of price (value) of gold and unlimited capacity of mining gold imply that the
rel
ECON 4271
April 11, 2017
Problem 1
Consider an economy in which the money growth rate permanently increases from 3 percent to
10 percent. What is the effect of this policy change on the capital stock?
The increase of money growth rate from 3 percent to 10
Example I - Econ 4721
Spring 2016
Competitive Market vs SPP
Assume a two period OLG model. When young, people receive y1 > 0 of the unique consumption good
and y2 > 0 when old. Population growth is given by n > 1 and money supply grows at z > 1. The utili
Problem 1:
1. What is the equation for a feasible set of this economy? Portray the feasible set on a
graph. With arbitrarily drawn indifference curves, illustrate the stationary combination of c1
and c2 that maximizes the utility of future generations.
So
Chapter 1 - Lecture Notes
June 14, 2016
1
Basic Definitions
What is money?
In the language of economists money is a narrow class of assets with special
properties. Anything that is generally accepted in exchange for goods, services
or for the repayment of
Summer 2016
Money and Banking
ECON 4721
Money and Banking
ECON 4721 - Summer 2016
Department of Economics
University of Minnesota
Syllabus
Lecture Time: 11:00 - 1:00 p.m. on Tue, Wed, Thur.
Class Room: Carlson School 1-135.
Instructor First Half: Marcos D
University of Minnesota
Department of Economics
Econ 4721: Money and Banking
Spring 2015
Instructor: Gustavo Leyva
Midterm
Name:
1
Blessing or curse. (40 pts total, 8 pts each)
1. The price (of the consumption good) level doubles from period to period. Th
University of Minnesota
Department of Economics
Econ 4721: Money and Banking
Spring 2015
Instructor: Gustavo Leyva
Midterm
Answer Key
Name:
1
Blessing or curse. (40 pts total, 8 pts each)
1. The price (of the consumption good) level doubles from period to
frontierShiyu Teng
ECON 4721
Problem Set 4
12/10/2015
Problem 1
a. According to the market clearing condition, we have v t M t =Qt + H t , so we can get
that v t =
Q t + H t
. Also, we already know that
Mt
M t=1000000 , Qt =2,000,000
and H t =5,000,00020
Shiyu Teng
ECON 4721
Problem Set 2
10/31/15
Exercise 2.3
a. According to the problem, we can see that to obtain a unit of gold, a person need to give
up unit of consumption good. What is more, the should equal to the intrinsic value of
gold, which is v in
Shiyu Teng
Econ 4721
Problem Set 3
11/28/15
Problem 1
6.1
Suppose the amount of money is 1. And from the question we can get that the gross rate of
return of fiat money is n/z=1.08
According to the question, if people hold the fiat money, then the expecte
Josh Palmer
Money and Banking
Homework 2
Monetary Policy and the Zero Lower Bound
a) The Zero Lower Bound (ZLB) is a macroeconomic problem of monetary policy that arises when
a central bank has lowered its short-term nominal interest rate to or near zero.