Questions from Macroeconomics


Q: In Table 13.2, how much unused lending capacity does

In Table 13.2, how much unused lending capacity does Eternal Savings have at step 4?

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Q: How large is the difference between the interest rates on six-

How large is the difference between the interest rates on six-month and five-year jumbo CDs?

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Q: If the GM bond described on pages 303–304 was resold

If the GM bond described on pages 303–304 was resold for $1,500, what would its yield be?

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Q: What was the Fed’s target for the fed funds rate in December

What was the Fed’s target for the fed funds rate in December 2008?

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Q: In Table 15.1, what is the implied price of

In Table 15.1, what is the implied price of holding money in a checking account rather than in Treasury bonds?

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Q: If the nominal rate of interest is 5 percent and the real

If the nominal rate of interest is 5 percent and the real rate of interest is 3 percent, what rate of inflation is anticipated?

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Q: According to Bernanke’s rule of thumb (p. 320), how

According to Bernanke’s rule of thumb (p. 320), how much fiscal stimulus would be equivalent to a 2-point reduction in long-term interest rates?

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Q: Why should taxpayers subsidize public colleges and universities? What external benefits

Why should taxpayers subsidize public colleges and universities? What external benefits are generated by higher education?

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Q: If the tax elasticity of supply is 0.16, by

If the tax elasticity of supply is 0.16, by how much do tax rates have to be reduced to increase the labor supply by 2 percent?

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Q: Which AS curve (a, b, or c) in

Which AS curve (a, b, or c) in Figure 16.1 causes the least unemployment when fiscal or monetary restraint is pursued? Figure 16.1

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