Q: Most of the time it is quite difficult to separate the three
Most of the time it is quite difficult to separate the three functions of money. Money performs its three functions at all times, but sometimes we can stress one in particular. For each of the followi...
See AnswerQ: Consider the following table with data about monetary aggregates (billions of
Consider the following table with data about monetary aggregates (billions of dollars, seasonally adjusted data): a) Calculate the annualized growth rate of M1 and M2 for the following periods: May...
See AnswerQ: Assume that you are interested in earning some return on idle balances
Assume that you are interested in earning some return on idle balances you usually keep in your checking account and decide to buy some money market mutual fund shares by writing a check. Comment on t...
See AnswerQ: Inhabitants of Pandora use stone beads as money. On average,
Inhabitants of Pandora use stone beads as money. On average, every stone bead is used five times per year to carry out transactions. The total supply of beads is forty million. a) What is the level of...
See AnswerQ: Plot the following table on a graph showing average money growth rates
Plot the following table on a graph showing average money growth rates on the horizontal axis and average inflation rates on the vertical axis (data is for the period 2002–2012, from...
See AnswerQ: Go to the St. Louis Federal Reserve FRED database, and
Go to the St. Louis Federal Reserve FRED database, and pull data on annual unemployment rates for the following countries, starting in 2000: United States (USAURNAA), Canada (CANURNAA), United Kingdom...
See AnswerQ: Currently, many banks offer online services that save customers a trip
Currently, many banks offer online services that save customers a trip to the bank. In addition, ATMs and debit cards allow depositors twenty-four-hour access to their balances. Comment on the effects...
See AnswerQ: These days many firms post their catalogs or their product prices on
These days many firms post their catalogs or their product prices on the Internet. In addition, most retailers have adopted bar codes to keep track of their inventories and implement price changes. Co...
See AnswerQ: Is it correct to assume that total income equals total expenditure for
Is it correct to assume that total income equals total expenditure for a household? What about for the whole economy?
See AnswerQ: Suppose you take out a loan at your local bank and the
Suppose you take out a loan at your local bank and the nominal interest rate is 12%. The bank expects the inflation rate to be 4% during the life of your loan. a) What is the bank’s ex ante real inter...
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