Question 1 should read, "Show the effect of dollar appreciation and depreciation with the yen on the price of U.S. exports and imports by updating Table 15.2.)
Follow these instructions for completing and submitting your assignment:
1. Place all answers, both numerical and written, in a single excel spreadsheet.
2. Place each problem into a separate tab or sheet in an Excel file.
1. Chapter 13, Technical Questions 1,
Explain which of the following are counted as part
of the money supply (M1):
A. Checking account deposits
C. Savings account deposits
D. Government bonds
1. Chapter 13, Technical Questions 3 If the reserve requirement (rr) is 0.2, what is the simple deposit multiplier? If, in addition, the currency deposit ratio (c) is 0.05 and the excess reserve ratio (e) is 0.15, what is the money multiplier? Explain why the money multiplier differs from the simple deposit multiplier.
The deposit multiplier is the inverse of the reserve requirement.
D = 1
mm = 1 + c
c + rr + e
5 Explain which of these interest rates the Federal Reserve sets:
A. The discount rate
B. The federal funds rate
C. The prime rate
In current business publications or on the Federal Reserve Web site (www.federalreserve.gov), find the press release from the most recent meeting of the FOMC. What is the targeted federal funds rate? How does the FOMC evaluate the balance of risks between its goals of price stability and sustainable economic growth? Chapter 14, Application Question 1 in the textbook.
Describe how the following statements relate to the AD-AS model:
A: The Fed has bought more than $2 trillion of Treasury and mortgage bonds to stimulate the economy.
B:The above actions by the Fed may cause inflation to rise to levels that most would consider unacceptable.
C: The Fed expected a weaker dollar to help increase exports.
D: Businesses already have ample access to cheap credit and are reluctant to borrow, hire, and invest for other reasons.