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14.02 Quiz 1 Solutions Fall 2004 Multiple
... Intuitively, given the level of the money supply, if income (Y) is high, then demand for money will be high (because when output increases, there are more transactions in the economy). For money demand to equal money supply, therefore, interest rates also need to be high in order to reduce money de ...
... Intuitively, given the level of the money supply, if income (Y) is high, then demand for money will be high (because when output increases, there are more transactions in the economy). For money demand to equal money supply, therefore, interest rates also need to be high in order to reduce money de ...
ECON 201: Introduction to Macroeconomics Final Exam December
... 24. When an economy's overall production grows faster than its population, it is referred to as: A) long-run growth per capita. B) an increase in nominal GDP. C) deflation. D) the paradox of thrift. 25. Deviations from the natural rate of unemployment are known as: A) frictional unemployment. B) str ...
... 24. When an economy's overall production grows faster than its population, it is referred to as: A) long-run growth per capita. B) an increase in nominal GDP. C) deflation. D) the paradox of thrift. 25. Deviations from the natural rate of unemployment are known as: A) frictional unemployment. B) str ...
Document
... variant of the systems dynamics approach. “Systems dynamics is well-suited to post-Keynesianinstitutionalist economic model building. It is a dynamic disequilibrium approach to modelling complex systems that portrays human behaviour and micro-level decision making as it actually is, rather than as i ...
... variant of the systems dynamics approach. “Systems dynamics is well-suited to post-Keynesianinstitutionalist economic model building. It is a dynamic disequilibrium approach to modelling complex systems that portrays human behaviour and micro-level decision making as it actually is, rather than as i ...
Economics 5310: Applications of IS
... 4. The administration reduces the income tax rate. The IS curve will flatten out. This will increase Y and r as consumption increases due to higher income multiplier, but it will crowd out investment and net exports. 5. A change in the nominal interest rate and exchange rate is matched by a change ...
... 4. The administration reduces the income tax rate. The IS curve will flatten out. This will increase Y and r as consumption increases due to higher income multiplier, but it will crowd out investment and net exports. 5. A change in the nominal interest rate and exchange rate is matched by a change ...
Capital Inflow into Developing Economies: A Macroeconomic Study
... domestically consumed and exported. Its price P is fixed in the domestic currency. It imports a commodity the price of which P* is fixed in the foreign currency. Only two countries are assumed to keep the exposition simple and manageable. Commodity prices are fixed, possibly due to the existence of ...
... domestically consumed and exported. Its price P is fixed in the domestic currency. It imports a commodity the price of which P* is fixed in the foreign currency. Only two countries are assumed to keep the exposition simple and manageable. Commodity prices are fixed, possibly due to the existence of ...
Group Records Higher Current Quarter Pre
... Japan in the early part of the year, the Group operating profit (without exceptional item) reduced by 8.3% to RM310.4 million from RM338.4 million reported in the previous corresponding period. In the current period, no exceptional gain was reported as opposed the recognition of negative goodwill a ...
... Japan in the early part of the year, the Group operating profit (without exceptional item) reduced by 8.3% to RM310.4 million from RM338.4 million reported in the previous corresponding period. In the current period, no exceptional gain was reported as opposed the recognition of negative goodwill a ...
Final
... 4. On January 1, 2009, one English pound can buy 1.5 U.S. dollars. The one-year real risk-free interest rate in England and the United States is 3 percent. The expected inflation rate in 2009 is 1 percent in the United States and the expected inflation rate in England is 5 percent. Assuming that th ...
... 4. On January 1, 2009, one English pound can buy 1.5 U.S. dollars. The one-year real risk-free interest rate in England and the United States is 3 percent. The expected inflation rate in 2009 is 1 percent in the United States and the expected inflation rate in England is 5 percent. Assuming that th ...
14.02 Quiz 1 Solutions Fall 2004 Multiple-Choice Questions (30/100 points)
... Intuitively, given the level of the money supply, if income (Y) is high, then demand for money will be high (because when output increases, there are more transactions in the economy). For money demand to equal money supply, therefore, interest rates also need to be high in order to reduce money de ...
... Intuitively, given the level of the money supply, if income (Y) is high, then demand for money will be high (because when output increases, there are more transactions in the economy). For money demand to equal money supply, therefore, interest rates also need to be high in order to reduce money de ...
Monetary
... • Higher interest rate than now • How much higher? • Let the market take on more active roles. Governments only insure small depositors. Interest rate will increase to reflect the risk. ...
... • Higher interest rate than now • How much higher? • Let the market take on more active roles. Governments only insure small depositors. Interest rate will increase to reflect the risk. ...
S 1
... shift to the right. – As investment increases, firms compete harder for the available savings and push up the interest rate from i*1 to i*2. ...
... shift to the right. – As investment increases, firms compete harder for the available savings and push up the interest rate from i*1 to i*2. ...
Consequence of Innovation: About Twenty
... When customers spend, they engage in profit maximization activity. During inflation, for example, customers spend more, because the future will cost more tomorrow. Because during deflation customers expect decreasing prices, profit maximization to the customer means spending less. OK, but then why a ...
... When customers spend, they engage in profit maximization activity. During inflation, for example, customers spend more, because the future will cost more tomorrow. Because during deflation customers expect decreasing prices, profit maximization to the customer means spending less. OK, but then why a ...
Second Exam with answers (1:20
... Consider an aggregate production function: Y=30(K)1/2 (L)1/2, where Y is real GDP, K is the capital stock level, and L is the total number of workers in the economy. The number of workers is constant and equal to 100. 26) In Economics 101 you studied returns to scale which considers what happens to ...
... Consider an aggregate production function: Y=30(K)1/2 (L)1/2, where Y is real GDP, K is the capital stock level, and L is the total number of workers in the economy. The number of workers is constant and equal to 100. 26) In Economics 101 you studied returns to scale which considers what happens to ...
Izmir University of Economics Name: Department of
... increase. When interest rate increases I decreases so does the AE. As AE decreases, equilibrium Y decreases in the goods market and this causes money demand to shift to the left in the money market. As a result, interest rate increases less than it would have if the demand for money had not decrease ...
... increase. When interest rate increases I decreases so does the AE. As AE decreases, equilibrium Y decreases in the goods market and this causes money demand to shift to the left in the money market. As a result, interest rate increases less than it would have if the demand for money had not decrease ...
Econ 002- INTRO MACRO Prof. Luca Bossi April 29
... a) (5 POINTS) Derive an expression of the money supply M as a function of the currency to deposit ratio (cr), the market interest rate (r), the reserve requirement (rr), the discount rate (dr) and B (the Monetary Base), and briefly explain how r and dr would affect M. (Hint: appropriately manipula ...
... a) (5 POINTS) Derive an expression of the money supply M as a function of the currency to deposit ratio (cr), the market interest rate (r), the reserve requirement (rr), the discount rate (dr) and B (the Monetary Base), and briefly explain how r and dr would affect M. (Hint: appropriately manipula ...
Business Cycles Analysis: A Model to Study the Fluctuations of
... Variables: Leading and Lagging indicators Procyclical variables move along with the GDP. GDP components move together and Inflation Anticyclical variables move in the opposite direction of the GDP Unemployment rate Acyclical variables does not have any relation with GDP and amount of water under the ...
... Variables: Leading and Lagging indicators Procyclical variables move along with the GDP. GDP components move together and Inflation Anticyclical variables move in the opposite direction of the GDP Unemployment rate Acyclical variables does not have any relation with GDP and amount of water under the ...
Exam Answers
... coffee beans imported from Ethiopia. Which of the following actions by the Ethiopian firm that exported the beans would act to make the NCO=NX identity hold for the U.S.? a. The firm locks Deardorff’s dollars in a safe at its corporate headquarters. b. The firm sells the dollars to an Ethiopian stor ...
... coffee beans imported from Ethiopia. Which of the following actions by the Ethiopian firm that exported the beans would act to make the NCO=NX identity hold for the U.S.? a. The firm locks Deardorff’s dollars in a safe at its corporate headquarters. b. The firm sells the dollars to an Ethiopian stor ...
Growth - University of Notre Dame
... Aren’t we supposed to be studying growth? In the long run, there is no growth in this model – it goes to a steady state! We’ll fix that. You can kind of see, however, that sustained growth must come from increases in productivity. Why? ...
... Aren’t we supposed to be studying growth? In the long run, there is no growth in this model – it goes to a steady state! We’ll fix that. You can kind of see, however, that sustained growth must come from increases in productivity. Why? ...
ECON 100 Tutorial: Week 21
... money wage rates; so the unemployment rate rests at the equilibrium level of the ‘natural rate’. When the inflation rate is constant (non-accelerating), the case is (again) made that job-seekers do not over/under estimate the purchasing power of money wage rates; so the unemployment rate rests at th ...
... money wage rates; so the unemployment rate rests at the equilibrium level of the ‘natural rate’. When the inflation rate is constant (non-accelerating), the case is (again) made that job-seekers do not over/under estimate the purchasing power of money wage rates; so the unemployment rate rests at th ...
Module 18-SRAS
... Have workers work harder by increasing the length of the work and the number of days worked Switch workers from uncounted production to counted production that generates output With labor being paid in nominal wages based on yearly contracts, employers are paying less in wages than the increase in t ...
... Have workers work harder by increasing the length of the work and the number of days worked Switch workers from uncounted production to counted production that generates output With labor being paid in nominal wages based on yearly contracts, employers are paying less in wages than the increase in t ...