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EC 202 assignment#4, EC 202 assignment#3, economics chapter 7, EC 202 assignment#2, Quiz 1, EC 202 assignment #1

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Suppose you have $200 to invest at a nominal interest rate of 8%. If the inflation rate is 3%, then the real return on your investment is: $10 If Table 11.3 represents all the investments available to the economy, the nominal interest rate is 10%, and there is no inflation, what will be the level of investment in the economy? (Note that the Cost represents the level of investment for each investment project.) $100 The present value of a given payment in the future _______ when interest rates rise. decreases Which of the following is not included in M1? savings accounts 4 Assume the following information about the DUCK BANK: Bank deposits are $30,000; Loans are $20,000; Reserves are $5,000; and the reserve requirement is 10%. The DUCK BANK is holding _______ in excess reserves. Don't know? Assume the following information about the DUCK BANK: Bank deposits are $30,000; Loans are $20,000; Reserves are $5,000; and the reserve requirement is 10%. The DUCK BANK is holding _______ in excess reserves. $2,000 If the banking system has a required reserve ratio of 5 percent, then the money multiplier is: 20 If the FED sells $7.5 million of US bonds and the reserve requirement is 25%, M1 will eventually: decrease by $30 million If the quantity of money demanded exceeds the quantity of money supplied, then the: interest rate will increase If the FED has a major policy objective to decrease unemployment, it should: decrease the reserve requirement and/or conduct an o

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EC 202 assignment#4, EC 202 assignment#3,
economics chapter 7, EC 202 assignment#2, Quiz
1, EC 202 assignment #1

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Practice questions for this set


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intermediate



Choose an answer



Goods and services that are purchased for resale or for further processing or
1
manufacturing are called ______ goods.



Suppose you have $200 to invest at a nominal interest rate of 8%. If the inflation rate is
2
3%, then the real return on your investment is:



Suppose consumer tastes and preferences shift from a desire to go skiing to an interest
3 in snowboarding. If skis and snowboards are produced by different firms, then firms
that produce snowboards will experience:

, Assume the following information about the DUCK BANK: Bank deposits are $30,000;
4 Loans are $20,000; Reserves are $5,000; and the reserve requirement is 10%. The DUCK
BANK is holding _______ in excess reserves.



Don't know?


Terms in this set (95)


Suppose you have $200 $10
to invest at a nominal
interest rate of 8%. If the
inflation rate is 3%, then
the real return on your
investment is:

If Table 11.3 represents all $100
the investments available
to the economy, the
nominal interest rate is
10%, and there is no
inflation, what will be the
level of investment in the
economy? (Note that the
Cost represents the level
of investment for each
investment project.)

The present value of a decreases
given payment in the
future _______ when interest
rates rise.

Which of the following is savings accounts
not included in M1?

, Assume the following $2,000
information about the
DUCK BANK: Bank
deposits are $30,000;
Loans are $20,000;
Reserves are $5,000; and
the reserve requirement is
10%. The DUCK BANK is
holding _______ in excess
reserves.

If the banking system has 20
a required reserve ratio of
5 percent, then the money
multiplier is:

If the FED sells $7.5 million decrease by $30 million
of US bonds and the
reserve requirement is
25%, M1 will eventually:

If the quantity of money interest rate will increase
demanded exceeds the
quantity of money
supplied, then the:

If the FED has a major decrease the reserve requirement and/or conduct an
policy objective to open market purchase.
decrease unemployment,
it should:

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