Auxiliary Problems for Chapter 9
1. The recent crash of the housing market directly affected which component of the GDP
equation?
Investment
2. How are MPC and MPS related to disposable income?
MPC = C/Yd
MPS = 1 MPC
3. The table below shows disposable in
Extra Problems for Chapter 11
1. What are the two major steps that the government takes to implement fiscal policy?
Step 1) Calculate the amount of desired change in aggregate demand
Step 2) Designate the policy tools that will be used to carry out this c
Extra Problems for Chapter 10
1. List four sources of leakage from the circular flow in an economy. How does a simultaneous
increase in imports and increase in business saving affect the circular flow?
Consumer savings, imports, business savings, and taxe
Chapter Notes
Module 5A
Interest Rates and Monetary Policy
(Chapter 16 in Macroeconomics; chapter 33 in Economics textbook.)
I. Introduction to Monetary Policy
A. How does the Feds Board of Governors formulate, and twelve Federal Reserve
Banks implement,
Extra Problems for Chapter 8
1. What does the stock market tell you about consumer behavior in the economy?
2. According to Says Law, how is supply of the economys output related to the demand for the output?
3. Suppose you have $3,000 in savings when the
A
Name: _
(Must be printed and legible)
Use one decimal place in answers, either rounding or truncating. If the answer should be a percent,
show it as a percent. Ex: 23.5%
1. Define "closed economy." does not trade with other economies
2. Define "disinfla
