Questions from Macroeconomics


Q: Think of ticket scalpers at a rock concert, a baseball game

Think of ticket scalpers at a rock concert, a baseball game, and an opera. Might they exist because the tickets to these events were originally sold for less than the equilibrium price? Why or why not...

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Q: If reserves increase by $2 million and the required reserve ratio

If reserves increase by $2 million and the required reserve ratio is 8 percent, what is the change in the money supply?

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Q: If reserves increase by $2 million and the required reserve ratio

If reserves increase by $2 million and the required reserve ratio is 10 percent, what is the change in the money supply?

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Q: If reserves decrease by $4 million and the required reserve ratio

If reserves decrease by $4 million and the required reserve ratio is 10 percent, what is the change in the money supply?

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Q: Reserves change by $10 million and the money supply changes by

Reserves change by $10 million and the money supply changes by $50 million. What does the simple deposit multiplier equal? What does the required reserve ratio equal?

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Q: If reserves decrease by $3 million and the required reserve ratio

If reserves decrease by $3 million and the required reserve ratio is 8 percent, what is the change in the money supply? What does the simple deposit multiplier equal?

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Q: If the federal funds rate is 6 percent and the discount rate

If the federal funds rate is 6 percent and the discount rate is 5.1 percent, to whom will a bank be more likely to go for a loan, another bank or the Fed? Explain your answer.

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Q: Complete the following table: Federal Reserve Action Effect

Complete the following table: Federal Reserve Action Effect on the Money Supply (up or down?)  Lower the discount rate   Conduct open market purchase   Lower required reserve ratio   Rais...

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Q: Explain how to derive a production possibilities frontier (PPF).

Explain how to derive a production possibilities frontier (PPF).

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Q: What does a PPF that is bowed outward imply about the opportunity

What does a PPF that is bowed outward imply about the opportunity cost of production?

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