LAST NAME: (as it appears on Ryerson ID]
FIRST NAME: (as it appears on Ryerson ID]
1] Fill in your last name, first initial and student# on the scantron form.
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Do NQ.T.iust.wri.te. yo or. personali
Inflation rate ( f )
Annual rate of increase in the number of dollars needed to pay for the same services
Real or inflation-free interest rate ( i )
An estimate of the true earning power of money when he inflation effects have been
r = Nominal interest rate per year without considering the effect of any compounding. Also
called the Annual Percentage Rate (APR)
i = Effective (and nominal) interest rate per compounding (interest) period
i a = Effective annual interest rate taking into
Quiz: <span class="invisibleNumber11"></span>Chapter 11 End of Chapter Quiz
Chapter 11 End of Chapter Quiz
1. When someone keeps $100 in cash under her pillow and one day takes it out and deposits it in a
checking account, this action will:
Quiz: <span class="invisibleNumber15"></span>Chapter 15 End of Chapter Quiz
Chapter 15 End of Chapter Quiz
1. Suppose the neutral real interest rate is 3 percent in country A and 1 percent in country B. What
might explain this difference? (Hint
Quiz: <span class="invisibleNumber12"></span>Chapter 12 End of Chapter Quiz
Chapter 12 End of Chapter Quiz
1. Suppose potential output grows 2 percent per year and the natural rate of unemployment is
constant at 6 percent. In 2020, the unemploym
Quiz: <span class="invisibleNumber14"></span>Chapter 14 End of Chapter Quiz
Chapter 14 End of Chapter Quiz
1. Suppose that country A and country B have the same rate of money growth, and velocity is
constant in both. Output growth is higher in
Quiz: <span class="invisibleNumber17"></span>Chapter 17 End of Chapter Quiz
Chapter 17 End of Chapter Quiz
1. Suppose that firms in Boversia gain confidence in the economy, so domestic investment rises for
any given interest rate. For now, assu
Assignment 2 with Answers
1. (Ch.11, Q#12): Assume the monetary base is $100, the currency-deposit ratio
is 0.5, and the reserve-deposit ratio is 0.1.
a) Calculate the money multiplier and the money supply.
b) Suppose the currency-deposit ratio
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(,8). .a. 6 =3 3: I3?.~1
= I 00 + 2
1.G. Reecy's Hamburger Joint is a fast-food restaurant. Which of the following is a factor
the raw meat used for the hamburgers
the hamburger buns
the concentrate that is diluted to make the soft drinks
1.Louis has invested $1,000 in the stock market. At the end of one year, there is a 30%
chance that his stock will be worth only $800 and a 70% chance that it will be worth
$1,200. The expected value of his stock at the end of one year is:
Suppose the government decides to fight obesity in America by imposing an excise tax based on the saturated fat content of food. The most likely effect of this tax would be to:
lower the profits of ice cream suppliers.
decrease revenue for the go
1.Jacquelyn is a student at a major state university. Which of the following is NOT an
explicit cost of her attending college?
the salary that she could have earned working full-time
computer lab fees
2.Which of t
1.A price control is:
control of the price of a good by the firm that produces it.
a legal restriction on how high or low a price in a market may go.
an upper limit on the quantity of some good that can be bought or sold.
a tax on the sale of
1.A consumer's willingness to pay reflects:
the maximum price at which he or she would buy the good or service.
the minimum price at which he or she would buy the good or service.
the cost of producing the good or service.
the equilibrium pric
1.An indifference curve is a line showing all of the consumption bundles that:
an individual can purchase with a given income.
yield the same total utility for an individual.
yield the same marginal utility.
have the same marginal rate of subs
1.Government payments to individuals for which no good or service exchanged are:
spending on goods and services.
2.Which of the following transactions is a transfer payment?
The government pays
1.The price elasticity of demand measures the responsiveness of the change in the:
quantity demanded to a change in the price.
price to a change in the quantity demanded.
slope of the demand curve to a change in the price.
slope of the demand
November 1, 2016
Solow vs. Endogenous Growth Model (ASSIGNMENT 2 DUE ON THE 15th not the 9th)
o Countries (rich and poor) will converge to the same standard of living in the long
run, as long as they are the same across key characteristics
November 8th In class notes
IS LM FE Model
- We have already studied the three main components of a macroeconomic model in
1. Labour market
2. Goods market
3. Asset market
- This model allows us to bring them all together and study them simulta
Macro Pre-Midterm Notes
Balance of payments accounting (BOP):
- DR(-) any transaction that leads to an outflow of funds from the country
- CR(+) inflow of funds into the country
- generally called, the sum of the capital and the financial