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The Treasury Secretary and the Fed. Occasionally, some economists or politicians. How do you think this would affect the operation of the Federal Reserve?
If there were no reserve requirements for banks, how do you think their reserve holdings would compare to money market mutual funds?
If a customer withdrew $2,000 in cash from a bank and the reserve ratio was 0.2, by how much could the supply of money eventually be reduced?
Both insurance companies and banks are financial intermediaries. Why do macroeconomists study banks more intensively than insurance companies?
Search the Web for articles on currency and the underground economy. How have various authors used estimates of currency to measure the underground economy?
nflation and Currency Held Abroad. How do you think this would affect the demand for U.S. currency by foreigners?
Only large banks and credit unions accepted the warrants. Why should IOUs warrants be viewed as money?
Why should these gift cards be considered part of the money supply? How do they differ from travelers checks?
How do you think the introduction of debit cards affected the amount of currency in the economy? How about the amount of checking account deposits?
What percentage of women have electricity in the home? From part (iii), can you infer that having electricity "causes" women to have fewer children? Explain.
The Stimulus Package was arguably a Keynesian measure so why would a Keynesian economist be critical of it? Why would neoclassical economists be critical?
What assumptions about the economy must be true for the invisible hand to work? To what extent are those assumptions valid in the real world?
Explain how the law of demand affected your purchase. Give specific examples of how the determinants of demand and supply affect this product.
Think about a product that you have purchased recently. Discuss the new equilibrium price and quantity that result from these changes.
The Federal Reserve Loan to JPMorgan Chase & Co. When the Federal Reserve makes a loan. Why was this risky for the Federal Reserve and a good deal for JPMorgan?
Crisis in the Short-Term Credit Market. In 1973, several major companies went bankrupt. How do you think the Fed should have handled that situation?
What do you think happened to the money supply after the Fed raised reserve requirements?
After the financial crisis in 2008, Congress wanted to have more oversight of the Fed and some suggested. What are the risks of this increased oversight?
What is the multiplier for investment spending for this economy? What is the level of saving at the level of equilibrium income? Show it is equal to investment.
Explain why equilibrium savings are unchanged. What does this suggest about the ability of policymakers to increase aggregate savings by affecting citizens?
By how much will increase in government purchases increase equilibrium income? By how much will a $10 billion increase in taxes decrease equilibrium income?
Explain how this difference might lead to a larger wealth effect for increases in housing prices than decreases in prices.
What would be their logical response in this situation? Is this consistent with the wealth effect?
Why some economists believed the increase in housing prices after 2002 was related to the fall in household savings that was also observed during that period.
If output equals y1 , what is the level of expenditures? At output equal to y1 , does the level of expenditures fall above, below, or on the 45° line?