Questions from Macroeconomics


Q: Treasury Yields Fall to Two-Week Low Treasury bond prices rose

Treasury Yields Fall to Two-Week Low Treasury bond prices rose on Monday, pushing interest rates down. The interest rate on 10-year bonds fell 4 basis points to 1.65%. What is the relationship between...

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Q: First Call, Inc., a smartphone company, plans to build

First Call, Inc., a smartphone company, plans to build an assembly plant that costs $10 million if the real interest rate is 6 percent a year or a larger plant that costs $12 million if the real inter...

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Q: The table sets out the data for an economy when the government’s

The table sets out the data for an economy when the government’s budget is balanced. a. Calculate the equilibrium real interest rate, investment, and private saving. b. If planned s...

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Q: The table sets out the data for an economy when the government’s

The table sets out the data for an economy when the government’s budget is balanced. If the government’s budget becomes a deficit of $1 trillion, what are the real...

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Q: The table sets out the data for an economy when the government’s

The table sets out the data for an economy when the government’s budget is balanced. Suppose that the quantity of loanable funds demanded increases by $1 trillion at each real inter...

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Q: Sara withdraws $1,000 from her savings account at the

Sara withdraws $1,000 from her savings account at the TD Bank, keeps $50 in cash, and deposits the balance in her chequable account at the TD Bank. What is the immediate change in M1 and M2?

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Q: How does the natural unemployment rate change and what factors might make

How does the natural unemployment rate change and what factors might make it change?

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Q: Rapid inflation in Brazil in the early 1990s caused the cruzeiro to

Rapid inflation in Brazil in the early 1990s caused the cruzeiro to lose its ability to function as money. Which of the following commodities would most likely have taken the place of the cruzeiro in...

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Q: Starbucks customers can now pay for their coffee using their smartphone.

Starbucks customers can now pay for their coffee using their smartphone. Does this mean the move to electronic payments is finally coming? If people can use their smartphones to make payments, will cu...

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Q: The RBC says lines of credit for education are popular and the

The RBC says lines of credit for education are popular and the size of loans to students has been going up as tuition costs have increased. Compared to “good debt” like a mortgage, student loan rates...

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