Assume that a Sil hene' alssuee' in EMS pays ems in interest each year What is the eunentytele' en the bend tfit can he purchased for
Msuehhna: Enter your responses as a percent rounded to one deehna! pteee.
ymmsen hendr's_ are
A change In I'he reserve requirement causes a change In a! of the fnfmwmg' except
'0' Excess. reserve;
a . The money multrpuer.
) O Psetax Income.
'0' The lendlng capacity nftihe bankrng system.
anges to the Fever nfreqtred reserves do not Impact The :eve
The Beam ef Gem-men; consists of
an O "J" membera appernted for 14-year terms.
a . 2E members.appolnted fer 2-yearterm5.
O 50 membem. appelnted for Tyear term-5.
0 1-4 members. appmnted for ?-year terms.
Long. Myeer terms result in a Fed mans pemeerr Hild
The Feer can use attef the feiipwmg except to change the tending capacity of the banking system.
0 The Iesenie quultement
0 open market eperatlens
a . the excess reserve reqLurement
O The discount rate
The Fed's tradin'enat tents are setting the discount
If the Federal Reserve buys geeernmentbenc'e from the publlc.
0 Bank reserve-5 wlll not change.
0 Demand den-Dane will decrease.
@ . The money supply will contract.
0 Banks wlll be able to make aclclltler'lal leane.
ETMecn'ng ream-es mm the banklng syste
The rate of return err a bond rs the
O Dlscuunt rate.
a . Federal funds rate.
a. O Tleld.
0 Ann LIEII Imam-5t payment.
The ytete' represents the return tn the holder trt terms afne-d tntwestpayrnents to be reren-Ed tn the future deed by the current market
Assume that the totiovving date describe the oondition of the banking system:
instructions: Enter your responses as whoie numbers.
is) How iarge is the money suppiy W?
cfw_hi How tarye are required reserves?
to How iarye are exoess reserve
According to the Wood View" heron;
Wor'fd View: China Cut-s Res enre Requirements
With its vest economy showing signs of stunner grewth_. China has opted to encourage more ban-it tending.
China's central hank, the People's Bank of Ghrna; said it is trimmi
Suppose the required reserve ratio as 10 percent. and the Fenr buys :35 mrron worth ofoorI-cts from me puoc. If the more deposits this amount Into transactrons accounts. the money supply we!
0 Increase drrecy by $5 mtlllon In Ireserye depostts. with an ad
Suppose at! of the bank's rrr the Federal Reserve System have $500 hrh'terr tn trenseetrens accounts. the redurred reserve rate rs 0.30. and there are no excess reserves In the system. rrme requrred reserve retro ts changed to 0.25, the tater
Cash held I: labile 3 billem
m S 1* billion
me. bond: new be .eee m
lewuufu 1T3. Financial Syste-
Asseme an eriginai Defence sheet in Tabie 114.3, if the Fed changes tire required reserve rm to i percent. tire iierte'irtgr nihilpticitji
us mmaw- uhli: m
Limiting-waddle 1T3. M 53min
Amme an original balance sheet The moneysuppv (M?) m Tame $4.3 I;
9 . $20 brllrun.
0 $120 bilnun.
0 $30 human.
MN; equalm currency new by the plum: plus deposits are ame-mans aunts. Math in
Suppose the required reserve ratro is 2'0 percent. and the Fed boys srmrrrran worth ofborrds from the puoirc. h" the poem: deoosrts duo amount rhto transacn'ons accounts. the money supply MW
O anrease dlrectty by $1 mJIIIon In reserve deposits. wlth an a
When decs are run cmmuously with a cans-Lam HOIJ'J'J'HEHHIEIESI rare, nominal! Interns-s! pay-mm on the fatal nominal deb: mi become smaer rEam-E Io Mum dems. refer: panbus.
a . True
Momma! Inns-ms! rate-5 Hay constant. then me ram: m'mw nomrna!
Refer to the tbte below:
I -21' _
Use the data given to detem'Jme new meet? tiseet sttmutw erresemteeemed between
Msueons: Enter your responses remitted tn the nearest MEIR nwnber.
cfw_a 20a? end 2005.-
1. In general, the marginal cost (MC) curve is U-shaped as you learned in the lectures and the
textbook. However, exception exists. Please provide at least one industry as an example to
illustrate that MC is not U-shaped. Explain briefly the shape of MC i
Price Leveliaverage price
Real Dutpuin $ billions per year]
cfw_a What is the new equilibrium level of real output? cfw_Don't forget the multiplier.)
Instructions: Enter your responses as whole numbers.
$ 300 i 2E] billion
cfw_a How large is the real oo
From ESE] to 2013, in now many 1,rears did
Instructions: Enter your responses as 1.I'u'nole numbers.
cfw_a Real oo nsumption decline?
cfw_by Real investment decline? |:|
cfw_o Real government spending increase by at least $100 billion?
t the full-employment level of GDP, the total value of goods demanded always equals the total value of goods supplied.
0 . True
) 0 False
This would be true only if macro equilibrium occurs at the Jll-emplovment level of output.
If desired investment exceeds actual investment. then
) O Inventories are less than the desired level.
0 . Cvclical unemployment exists.
0 A recessionary.r GDP gap will emerge.
O Inventories are accumulating beyond desired levels.
1Ii'Iil'hen actual inves
If the consumption function is G = $400 billion + DEV,
cfw_a What isthe MPG?
cfw_ti How large is autonomous C?
cfw_o How much do consumers spend with incomes of $4 trillion?
cfw_o How much do they save?
Instructions: Enter your respo
0 Impacts the aggregate supply.r curve.
0 . ls 'd'le smallest spending component.
0 Is the same as autonomous saving.
) 0 Is affected by consumer condence.
How consumers feel about the economy and their income will have a big impact on h
If leakages are less than injections. equilibrium output will be
) O Mere than fullemployment output, and an inationary gap will occur.
a . More than fullemployment output, and a recessionary gap will occur.
0 Less than full-employment output. and a reces
cfw_hillitu'm oi'tlullurs per you
Ci 25 53 1'5 100 [25 1512! HS 200
cfw_hillons of dollars per year
In Figure 9.9, at a full-employment output level of $150 billion. the gap by which actual aggregat
Iiiustrate the impact of increased consumer eo nfioenee on the foiiowing diagrams.
Instructions: For each of the graphs below, click and drag on the colored portion of the curve to its correct location cfw_not any one point).