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BUS 218, Section A Macroeconomics Professor Keyes Fall 2012 Homework Problem Set #6 Instructions and Formatting Guidelines 1. All work, with the...

Hi! I need help with number 2, 4, 9, 11, and 13! I would really appreciate it thank you! :)

BUS 218, Section A Macroeconomics Professor Keyes Fall 2012 Homework Problem Set #6 Instructions and Formatting Guidelines 1. All work, with the exception of sketches and/or math steps, must be typed into an electronic document ( not the section on the Blackboard link). Handwritten answers will not be accepted for credit, except as noted above. 2. The electronic copy should be in doc, docx, or rtf file format. Other file formats will not be graded. 3. The electronic copy should follow the naming format: 218.LastName.FirstName.HW6. 4. In an effort to conserve paper resources, most of your work (Word and/or Excel files) should be submitted electronically to the appropriate link on Blackboard. The assignment link is set up in the Assignments tab. Do not submit to the Digital Dropbox, the messaging through Blackboard, or through email. 5. Include the following in the comments section of your electronic submission: LastName, First Name, an acknowledgement of these instructions and attestation of originality of work submitted. 6. Any work completed by hand (eg math steps and/or sketches) should be neat and legible and clearly labeled. Print and sign a copy of the first page of this assignment, exactly as formatted, which will serve as the cover page for your printed submission. It is not necessary to provide a printed copy of your typed work. 7. Provide a right-aligned header for your printed submission with the following: a. Last Name, First Name b. Course ID, Section & Term c. Assignment Name 8. Include a centered page x of y footer on your printed submissions, with reference to electronic work where appropriate. 9. You may study in groups, but each student is required to submit his/her own original work. Do not copy answers from the textbook, fellow classmates, previous or other current micro students, or any other source. Include the names of anyone you worked with or consulted on this homework assignment (including study group, tutor, help session, etc). 10. It is not necessary to provide the questions with your answer. 11. Use complete sentences when answering questions, unless stated otherwise. 12. Graphs may be drawn by hand, and should be completed neatly and legibly. By signing this page, I ________________________________ attest that this is my own original work, and that I have followed the guidelines and instructions listed above. Signature & Date
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Professor Keyes BUS218.F12 Homework #6 Page 2 of 3 Ch 12: Production and Growth Ch 16: Monetary System Ch 21: Monetary and Fiscal Policy 45 points Chapter 12 1. List and describe the determinants of productivity. 2. Societies choose what share of their resources to devote to consumption and what share to devote to investment. Some of these decisions involve private spending; others involve government spending. a. Describe some forms of private spending that represent consumption and some forms that represent investment. The national income accounts include tuition as a part of consumer spending. In your opinion, are the resources you devote to your education a form of consumption or a form of investment? b. Describe some forms of government spending that represent consumption and some forms that represent investment. In your opinion, should we view government spending on health programs as a form of consumption or investment? Would you distinguish between health programs for the young and health programs for the elderly? 3. What is the opportunity cost of investing in capital? Do you think a country can “overinvest” in capital? What is the opportunity cost of investing in human capital? Do you think a country can “overinvest” in human capital? Explain. 4. In the 1990s and the first decade of the 2000s, investors from the Asian economies of Japan and China made significant direct and portfolio investments in the United States. At the time, many Americans were unhappy that this investment was occurring. a. In what way was it better for the United States to receive this foreign investment than not to receive it? b. In what way would it have been better still for Americans to have made this investment? Chapter 16 5. What is commodity money? What is fiat money? Which kind do we use? 6. If the Fed wants to increase the money supply with open-market operations, what does it do? 7. Why don't banks hold 100 percent reserves? How is the amount of reserves banks hold related to the amount of money the banking system creates? 8. Suppose that the reserve requirement for checking deposits is 10 percent and that banks do not hold any excess reserves. a. If the Fed sells $1 million of government bonds, what is the effect on the economy's reserves and money supply? b. Now suppose the Fed lowers the reserve requirement to 5 percent, but banks choose to hold another 5 percent of deposits as excess reserves. Why might banks do so? What is the overall change in the money multiplier and the money supply as a result of these actions?
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