Questions from Macroeconomics


Q: What is the relationship between the required reserve ratio and the money

What is the relationship between the required reserve ratio and the money supply? What is the relationship between the simple deposit multiplier and the money supply?

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Q: What does it mean to say that a bank is reserve deficient

What does it mean to say that a bank is reserve deficient?

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Q: A person takes $4,000 and places it into a

A person takes $4,000 and places it into a checking account in a bank. Does the composition of the money supply change? Does the size of the money supply change? Explain your answers.

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Q: Suppose the Fed lowers the federal funds rate target. How will

Suppose the Fed lowers the federal funds rate target. How will this action likely affect both the federal funds rate and the money supply?

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Q: What is the difference between the discount rate and the federal funds

What is the difference between the discount rate and the federal funds rate?

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Q: Which of the following should be included in the U.S

Which of the following should be included in the U.S. GDP for 2013? Explain how they will be handled when computing GDP using the expenditure approach. Explain why they should or should not be include...

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Q: Which of the following should be included in the U.S

Which of the following should be included in the U.S. GDP for 2013? Explain how they will be handled when computing GDP using the expenditure approach. Explain why they should or should not be include...

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Q: Pinnacle Paper Products Inc. can produce books or rolls of paper

Pinnacle Paper Products Inc. can produce books or rolls of paper towels. Here is its PPF for the resources and technology it has available:  What is gained by choosing to produce at point B, instea...

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Q: Wilson walks into his class 10 minutes late because he couldn’t find

Wilson walks into his class 10 minutes late because he couldn’t find a place to park. Because of his tardiness, he doesn’t hear the professor tell the class there will be a quiz at the next session. A...

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Q: Pinnacle Paper Products Inc. can produce books or rolls of paper

Pinnacle Paper Products Inc. can produce books or rolls of paper towels. Here is its PPF for the resources and technology it has available:  What is the opportunity cost of choosing to produce at p...

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