Multiple-choicefrågor till tentamen i makroekonomi to 27 april 2006
... 1. If the CPI (=consumper price index) in 2006 was 100 and in 2007 was 104.5, and your nominal hourly wage was 110 kronor in 2006 and was 112 in 2007. What was the inflation rate between 2006 and 2007? By how many percent did the nominal wage increase? How the real wage develop, in percentage terms. ...
... 1. If the CPI (=consumper price index) in 2006 was 100 and in 2007 was 104.5, and your nominal hourly wage was 110 kronor in 2006 and was 112 in 2007. What was the inflation rate between 2006 and 2007? By how many percent did the nominal wage increase? How the real wage develop, in percentage terms. ...
Activity questions
... 1. In year 1, nominal GDP is $500 billion, and in year 2 it is $600 billion. Meanwhile, the value of the GDP deflator has risen from 100 to 120. In this case: a) Real GDP has risen by 20%. b) Real GDP has fallen by 20%. c) Real GDP has stayed the same. d) Real GDP has risen more quickly than nominal ...
... 1. In year 1, nominal GDP is $500 billion, and in year 2 it is $600 billion. Meanwhile, the value of the GDP deflator has risen from 100 to 120. In this case: a) Real GDP has risen by 20%. b) Real GDP has fallen by 20%. c) Real GDP has stayed the same. d) Real GDP has risen more quickly than nominal ...
Simple Rules for Open Economies John B. Taylor
... • Of course, try to improve whatever parts need to be improved including risk premia and bank credit flows • Need more work on “political macroeconomics.” – First need to explain why some did not follow the recommendations. – Practical solutions should then follow. ...
... • Of course, try to improve whatever parts need to be improved including risk premia and bank credit flows • Need more work on “political macroeconomics.” – First need to explain why some did not follow the recommendations. – Practical solutions should then follow. ...
Chapter 12
... encourage the Monetary Policy Committee to lower the rate of interest. If this happened, it could neutralise the balance of payments effect of the ECB’s interest rate cut. In fact, if rates of interest in the UK fell by the same amount as in the euro-zone, the UK’s balance of trade would probably im ...
... encourage the Monetary Policy Committee to lower the rate of interest. If this happened, it could neutralise the balance of payments effect of the ECB’s interest rate cut. In fact, if rates of interest in the UK fell by the same amount as in the euro-zone, the UK’s balance of trade would probably im ...
Solutions
... in the long run, the nominal economy is completely separate from the real economy. This means that in the long run, money and nominal prices have no impacts on real variables such as real GDP. The sticky in‡ation assumption in the Short Run Model implies that the Classical Dichotomy does NOT hold in ...
... in the long run, the nominal economy is completely separate from the real economy. This means that in the long run, money and nominal prices have no impacts on real variables such as real GDP. The sticky in‡ation assumption in the Short Run Model implies that the Classical Dichotomy does NOT hold in ...
Administrative Details
... Bankers nominate the Federal Reserve bank presidents who cast five votes on the Open Market Committee Obsession with fighting inflation People who benefit from low inflation, are not those who suffer from high unemployment!!!!!!!! ...
... Bankers nominate the Federal Reserve bank presidents who cast five votes on the Open Market Committee Obsession with fighting inflation People who benefit from low inflation, are not those who suffer from high unemployment!!!!!!!! ...
(missing) Chapter 20: Great Depression and European Unemployment
... Dip in unemployment at end of 80s - but inflation acclerated, suggesting natural rate of unemployment has steadily risen Why increasing natural rate? Easy to explain high natural rate, in terms of social benefits, taxes, etc.. Example of UK, where natural rate seems to have fallen, and contrast with ...
... Dip in unemployment at end of 80s - but inflation acclerated, suggesting natural rate of unemployment has steadily risen Why increasing natural rate? Easy to explain high natural rate, in terms of social benefits, taxes, etc.. Example of UK, where natural rate seems to have fallen, and contrast with ...
Practice Test questions for Spring, 2012 Fiscal/Monetary 1. Fiscal
... A) applied the unemployment compensation program to intrastate workers. B) agreed to subsidize unemployed workers to the extent of 50 percent of their average incomes. C) committed itself to accept some degree of responsibility for the general levels of employment and prices. D) agreed to hire, thro ...
... A) applied the unemployment compensation program to intrastate workers. B) agreed to subsidize unemployed workers to the extent of 50 percent of their average incomes. C) committed itself to accept some degree of responsibility for the general levels of employment and prices. D) agreed to hire, thro ...
Open economy macroeconomics
... Fixed Exchange Rate and Fiscal Policy • When (G) increases, – National output increases. – Interest rate will also increase, – There will be capital inflow – The central bank increases the money supply to keep the exchange rate constant. – The interest rate will return to the original value. In the ...
... Fixed Exchange Rate and Fiscal Policy • When (G) increases, – National output increases. – Interest rate will also increase, – There will be capital inflow – The central bank increases the money supply to keep the exchange rate constant. – The interest rate will return to the original value. In the ...
Downlaod File
... How are the risks of the capital market securities measured and evaluated? The technical, statistical and behavioral characteristics of the models used by major derivatives intermediaries are, in principle, well-equipped to provide estimates of "risk of loss" or "capital at risk" associated with a g ...
... How are the risks of the capital market securities measured and evaluated? The technical, statistical and behavioral characteristics of the models used by major derivatives intermediaries are, in principle, well-equipped to provide estimates of "risk of loss" or "capital at risk" associated with a g ...
Review Guide 2
... real interest rates, savings, and investment? There will be a leftward shift in the savings curve, causing the real interest rate to increase. There will be lower levels of both savings and investments. Explain the difference between stocks and bonds. A share of stock is a claim to partial ownership ...
... real interest rates, savings, and investment? There will be a leftward shift in the savings curve, causing the real interest rate to increase. There will be lower levels of both savings and investments. Explain the difference between stocks and bonds. A share of stock is a claim to partial ownership ...
1. Refer to the above graph. If the supply of money was $250 billion
... 3. The Board of Governors of the Federal Reserve System can increase commercial bank reserves by: A) increasing the discount rate. B) increasing the reserve ratio. C) decreasing the prime interest rate. D) buying government securities in the open market. 4. Assuming that the Federal Reserve Banks se ...
... 3. The Board of Governors of the Federal Reserve System can increase commercial bank reserves by: A) increasing the discount rate. B) increasing the reserve ratio. C) decreasing the prime interest rate. D) buying government securities in the open market. 4. Assuming that the Federal Reserve Banks se ...
Due Date: Thursday, September 8th (at the beginning of class)
... 2) Assume that the demand for real money is (M/P)d = 0.6*Y – 100i, where Y is national income and i is the nominal interest rate. The real interest rate r is fixed at 3 percent by the investment and saving functions. The expected inflation rate equals the rate of nominal money growth. a) If Y is 100 ...
... 2) Assume that the demand for real money is (M/P)d = 0.6*Y – 100i, where Y is national income and i is the nominal interest rate. The real interest rate r is fixed at 3 percent by the investment and saving functions. The expected inflation rate equals the rate of nominal money growth. a) If Y is 100 ...
Chapter 5: Worksheet mark scheme (25 marks)
... Give examples of four recent social and cultural changes in society. ...
... Give examples of four recent social and cultural changes in society. ...
Chapter 5: Worksheet mark scheme (25 marks)
... Give examples of four recent social and cultural changes in society. ...
... Give examples of four recent social and cultural changes in society. ...
Chap02
... • The average of the short term one year rates is 7%, but the three year rate is only 5%. • One could borrow any given amount such as $1000 for the full three years and invest that money one year at a time and rolling over the investment for three years. • The borrowing cost per year is 5% and the a ...
... • The average of the short term one year rates is 7%, but the three year rate is only 5%. • One could borrow any given amount such as $1000 for the full three years and invest that money one year at a time and rolling over the investment for three years. • The borrowing cost per year is 5% and the a ...
chapter 13 - Ken Farr (GCSU)
... The demand curve for money a. shows the amount of money balances that individuals and businesses wish to hold at various interest rates. b. reflects the open market operations policy of the Federal Reserve. c. shows the amount of money that individuals and businesses wish to hold at various price le ...
... The demand curve for money a. shows the amount of money balances that individuals and businesses wish to hold at various interest rates. b. reflects the open market operations policy of the Federal Reserve. c. shows the amount of money that individuals and businesses wish to hold at various price le ...
... Central government total income was up by 7.0% in real terms year-on-year in the same period, boosted by higher income tax revenue (13.7%). The total public debt stood at 58.7% of GDP in September, representing a 2.3-percentage-point increase on its level a year earlier. The government has sent eigh ...
Natural Rate of Interest
... One of the hot topics at the recent Federal Reserve conference at Jackson Hole was the natural rate of interest. What is natural rate and why does it matter to the central bank like Federal Reserve and the Bank of Korea? Suppose the economy is at full employment and the inflation rate is steady near ...
... One of the hot topics at the recent Federal Reserve conference at Jackson Hole was the natural rate of interest. What is natural rate and why does it matter to the central bank like Federal Reserve and the Bank of Korea? Suppose the economy is at full employment and the inflation rate is steady near ...
Interest rate
An interest rate is the rate at which interest is paid by borrowers (debtors) for the use of money that they borrow from lenders (creditors). Specifically, the interest rate is a percentage of principal paid a certain number of times per period for all periods during the total term of the loan or credit. Interest rates are normally expressed as a percentage of the principal for a period of one year, sometimes they are expressed for different periods such as a month or a day. Different interest rates exist parallelly for the same or comparable time periods, depending on the default probability of the borrower, the residual term, the payback currency, and many more determinants of a loan or credit. For example, a company borrows capital from a bank to buy new assets for its business, and in return the lender receives rights on the new assets as collateral and interest at a predetermined interest rate for deferring the use of funds and instead lending it to the borrower.Interest-rate targets are a vital tool of monetary policy and are taken into account when dealing with variables like investment, inflation, and unemployment. The central banks of countries generally tend to reduce interest rates when they wish to increase investment and consumption in the country's economy. However, a low interest rate as a macro-economic policy can be risky and may lead to the creation of an economic bubble, in which large amounts of investments are poured into the real-estate market and stock market. In developed economies, interest-rate adjustments are thus made to keep inflation within a target range for the health of economic activities or cap the interest rate concurrently with economic growth to safeguard economic momentum.