Study guides, Class notes & Summaries

PSU Econ 104 Final Exam – Brown with Correct Solutions 2024 If the required reserve ration is 20%, the simple deposit multiplier is _______ A. 2 B. 5 C. 10 D. 20 - Answer -B. 5 1/.2 = 5 Imagine that Kristy deposits $10,000 of currency into her checking account deposit at Bank A and the reserve ratio is 20%. As a result of Kristy's deposit, Bank A's reserves immediately increase by: A. $2,000 B. $8,000 C. $ 10,000 D. $50,000 - Answer -C. $10,000 This is how much money she puts i...

Economic growth in the 2nd quarter of this year was about_____. a. 1% b. 2% c. 3% d. 4% - Answer- 4% How does capital show up in GDP? a. as something owned by households b. as something owned by firms c. as something purchased by households d. as something produced by firms - Answer- as something produced by firms T or F: Every time the government writes a check that expense shows up in GDP. a. True b. False - Answer- False Since 1970, real GDP_____. a. decreased most...

Nominal GDP - Answer- the value of final goods and services evaluated at current-year prices How to calculate nominal GDP - Answer- C + I + G +NX Real GDP - Answer- The value of final goods and services evaluated at base-year prices How to calculate real GDP - Answer- P*Q for every good in GDP and add them all together BASE YEAR 2014 - 100M visits at $50 each 2015 - 103M visits at $53 10M cars at $20,000 each 11M cars at $20,500 each real GDP for 2015: (103M * $50 + 11M * 20,000...

What is an example of creative destruction? iPhone replacing old flip phones Changes in federal funds rate influences interest rates on car loans, mortgages and student loans (T or F) True In order to grow quickly, China concentrated spending in which piece of GDP? Investment What would be the best explanation for an economy with inflation and falling spending? Rising oil prices (SRAS shifts left) What will happen to the natural rate of unemployment if a new phone app were to speed up th...

QUESTIONS AND ANSWERS

QUESTIONS AND ANSWERS

QUESTIONS AND ANSWERS

QUESTIONS AND ANSWER

Say a bank has $200M in loans, $10M in reserves, and $200M in c. deposits. Also, the required reserve ratio is 5%. This back ____ bankrupt and it _____ have sufficient reserves to meet its reserve requirement a. is, does b. is , does not c. is not, does d. is not, does not correct answers is not, does If a bank makes a loan to a customer, that bank's net worth will not change when the loan is made. true or false correct answers true; when a bank makes a loan, it creates a deposit f...

federal expenditures correct answers $4008 billion (21%) GDP federal taxes correct answers $3315 billion (17.3% GDP) deficit correct answers $693 billion (3.7% GDP) federal debt correct answers 14.6 trillion (77% GDP) interest payments on the federal debt correct answers $269 billion (1.4% of GDP) federal funds rate correct answers 1.25% nominal GDP correct answers $19.2 tillion real GDP correct answers 17 tillion economic growth over the last 12 months correct answers 2....