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In the U., the required reserve ratio for banks is set by a)Bank owners. Treasury. c)Federal Bank. d)State Congress.
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1.In the U.S., the required reserve ratio for banks is set bya)Bank owners.b)U.S. Treasury.c)Federal Bank.

d)State Congress.


2.Which of the following is NOT the service provided by the Federal bank in U.S.?

a)Clearing checks between private banks.

b)Issuing the government bonds.

c)Holding commercial bank reserves.

d)Providing currency.


3.The assumption of Keynes model, which is different from the assumption of AD-AS model, is that

a)the price level is stable before the economy reaches full employment.

b)full employment is normal.

c)Government spending is a part of GDP.

d)real GDP is fixed in the long-run.


4.The following table shows the real GDP and the CPI for an economy:

Year 2018 2019

CPI 100 105

Real GDP $5.0 trillion $4.8 trillion

     

In the view of Keynesian macroeconomists with the "Equation for Exchange", the money supply growth rate in 2019 should be

a)undetermined because the velocity of money circulation is uncertain.

b)5.0%

c)4.0%

d)−4.0%.


5.Assume that an economy has 35 million as population, 30 million as labor force, and 28 million people are employed. The economy's natural unemployment rate is 6%. Given the information, we can conclude that the current unemployment rate is _____ and the economy is producing _____ its PPF.

A)20%; inside

B)6.7%; inside

C)6.7%; on

D)5.7%; on


6.The following table shows the demand schedule for round-trip flights between Houston and Taipei for business travelers:

 

Demand Schedule of Business Travelers

Price QD

$2,000 500

$1,500 1,000

$1,000 1,500

$500 2,000

  

Suppose an airline' marginal cost per seat for the round-trip fight is $500. For profit-maximization, the airline should charge ___ per round-trip (Hint: Apply the "half-way rule" of MR for monopoly).

A)$500

B)$1,000

C)$1,500

D)$2,000

 

 

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