Get college assignment help at Smashing Essays Just verify the answering questions according to the attachment
3a)If nominal GDP increased from $4 billion to $4.2 billion while
3a)If nominal GDP increased from $4 billion to $4.2 billion while real GDP increased from $3.8 billion to $3.9 billion, it follows that real GDP growth was ____% (show your work and formula) b)If the reserve ratio is 0.25, calculate the simple money multiplier. (Show work
a) If a country’s real GDP and population are, respectively, $500
a) If a country’s real GDP and population are, respectively, $500 billion and 200 million, then its per capita real output is _____ (show work). b) If the required reserve ratio is .10 and individuals hold no cash, what is the maximum amount of money that can be created from a $2 million deposit in the banking system? (show work
Just verify the answering questions according to the attachment
Just verify the answering questions according to the attachment
Suppose 65% of all undergraduates are registered in a math course
Suppose 65% of all undergraduates are registered in a math course this semester and 75% are registered in an economics class this semester. If registered in a math course and registered in an economics course are independent events, what is the probability that a randomly selected student is registered in either a math course or an economics course?
Consider a Dutch investor with 1,000 euros to place in a
Consider a Dutch investor with 1,000 euros to place in a bank deposit in either the Netherlands or Great Britain. The (one-year) interest rate on bank deposits is 2% in Britain and 4.04% in the Netherlands. The (one-year) forward euro–pound exchange rate is 1.575 euros per pound and the spot rate is 1.5 euros per pound. Answer the following questions, using the exact equations for UIP and CIP as necessary. a.) What is the euro-denominated return on Dutch deposits for this investor? b.) What is the (riskless) euro-denominated return on British deposits for this investor using forward cover? c.) Is there an arbitrage opportunity here? Explain why or why not. Is this an equilibrium in the forward exchange rate market? d.) If the spot rate is 1.5 euros per pound, and interest rates are as stated previously, what is the equilibrium forward rate, according to CIP? e.) Suppose the forward rate takes the value given by your answer to (d). Calculate the forward premium on the British pound for the Dutch investor (where exchange rates are in euros per pound). Is it positive or negative? Why do investors require this premium/discount in equilibrium? f.) If UIP holds, what is the expected depreciation of the euro against the pound over one year? g.) Based on your answer to (f), what is the expected euro–pound exchange rate one year ahead?
You are given the following information. The current dollar-pound exchange rate
You are given the following information. The current dollar-pound exchange rate is $2 per pound. A U.S. basket that costs $100 would cost $120 in the United Kingdom. For the next year, the Fed is predicted to keep U.S. inflation at 2% and the Bank of England is predicted to keep U.K. inflation at 3%. The speed of convergence to absolute PPP is 15% per year. (a) What is the expected U.S. minus U.K. inflation differential for the coming year? (b) What is the current U.S. real exchange rate, qUK/US, with the United Kingdom? (c) How much is the dollar overvalued/undervalued? (d) What do you predict the U.S. real exchange rate with the United Kingdom will be in one year’s time? (e) What is the expected rate of real depreciation for the United States (versus the United Kingdom)? (f) What is the expected rate of nominal depreciation for the United States (versus the United Kingdom)? (g) What do you predict will be the dollar price of one pound a year from now?
Treasuary bills have a fixed value ( say $1000 ) and
Treasuary bills have a fixed value ( say $1000 ) and pay interest by selling at a discount. I.E. a one year bill with a $1000 face value sells today for $950, it willl pay $1000-$950=$50 an interest over its life. The interest rate on the bill is therefore $50/$950=0.0526, or 5.26 %. a) suppose the price of the treasuary bill falls to $925. What happens to the interest rate? b)suppose, instead that the price rises to $975. What is the inerest rate now? c) NOW generalize this exapmle. Let P be the price of the bill and r the interest rate. Develop an algebraic formula expressing r in the terms of P. ( the interest earned is $1000-P. what is the % interest rate?)Show that this formula illustrates the point: HIGHER BOND PRICES MEAN LOWER INTEREST RATES.
Expalin what a $5 Billion increase in bank reserves will do
Expalin what a $5 Billion increase in bank reserves will do to real GDP under the following assumptions: a) Each $1 billion increase in bank reserves reduces the rate of interest by 0.75% b)Each 1% point decline in interest rates stimulates $50 Billion worth of new investment. c)The expenditure multiplier is 2.5 d) The aggregate supply curve is so flat that prices do nt rise noticeably when demand increases.
Suppose banks keep no excess reserves an no individuals or firms
Suppose banks keep no excess reserves an no individuals or firms hold on to cash. If someone suddenly discovers $12 million in buried treasure and deposits it in a bank, explain what will happen to the money supply if the required reserve ratio is 25%? IF the ratio were 100%?
question 1,3,4,5,6
Get college assignment help at Smashing Essays question 1,3,4,5,6
Question 1 and Question 3 please
Question 1 and Question 3 please
Explain the efficiency wage theory
Explain the efficiency wage theory
Consider a perfectly competitive market with many homogenous exercise gyms. Exercise
Consider a perfectly competitive market with many homogenous exercise gyms. Exercise gyms have learned that customers tend to use the gym less often than the customer anticipated when she signed up. Specifically, if the marginal price per gym visit is set equal to p, suppose that consumers anticipate they will use the gym 2(1 – p) times, when in fact they will end up using it only 1 – p times. Each gyms marginal cost per visit is c < 1. Competition between gyms means that a gym will offer the two-part tariff, with marginal price p and fixed membership charge A, which maximizes a consumers anticipated net surplus, subject to the gym breaking even. (a) Assuming that negative prices are not feasible, show that a gym will set p = 0 and A = c so that there is no marginal charge for a visit. (b) What two-part tari¤ would be o¤ered if all consumers accurately forecast their demand?
Does the balance in th accumulated Depreciation-Machinery account represent funds to
Does the balance in th accumulated Depreciation-Machinery account represent funds to replace the machinery when it wears out? If not, what does it represent? Two paragraph please
• Make a prediction about opportunities and challenges that an increase
• Make a prediction about opportunities and challenges that an increase in diversity may present in the United States in the next 50 years. Explain the reasons for your speculations.
explain why the food stamp program can only have the same
explain why the food stamp program can only have the same effect on the consumption pattern and well being of recipients as an out right cash transfer of the same cost. Why do you think it is not converted into an explicit cash transfer program, thereby saving the cost of printing and redeeming food stamps?
I had missed the lecture on “Trilemmas” completely in my economics
I had missed the lecture on “Trilemmas” completely in my economics history class due to some unforeseen natural cause. Professor is the type that lectures, and materials are not easily found on any reading assignments. According to wikipedia’s definition, “trilemma is a term used in discussing the problem associated with creating a stable international financial system. It refers to the trade-offs among the following three goals: a fixed exchange rate, national independence in monetary policy, and capital mobility. According to the Mundell-Fleming model, a small, open economy cannot achieve all three of these policy goals at the same time: in pursuing any two of these goals, a nation must forgo the third.” Upon reading, I still don’t have a good understanding of it. Questions: 1) What is the trilemma? (I think Wikipedia answered this one, but if you can add something or clarify, it’ll be good. Side question, how come you can’t achieve all three? Or how does in pursuing any two of the three goals, a nation must forgo the third? 2) What does having monetary policy for domestic purposes mean? 3) Define a fixed exchange rate? Why can it be beneficial? 4) What is the gold standard? 5) What are capital controls? What are capital flows? 6) How did credibility and cooperation matter during the pre-World War I gold standard? -Thank you
Hey there! You already have this question in your questions list
Hey there! You already have this question in your questions list on this website. http://www..com/homework-help-problems/Economics/6269867-Draw-a-supplydemand-diagram-of-the-US-Treasury-bond-market-to-illustr/ Question is exactly the same as I asked. I will post it again. 3) A) Suppose that as the economic recovery strengthened consumer expectations of annual inflation increased from 2% to 3.5 % and, at the same time, the expected real rate of return required to equate investor demand to the existing supply of 1 year Treasury notes increased from 1% to 1.5%. What would you expect to happen to the nominal yields on 1-year T-notes during the period over which these changes in inflation expectations and required real yields occurred? (Give a numerical answer if possible) Explain your reasoning. 3 pts. B) Draw a supply/demand diagram of the US Treasury bond market to illustrate the effects on it of the developments cited in part A. Label your diagram clearly! 3 pts. As you can see I asked you second part of these question. Hope, it helps.
Waterways has budgeted for 5,760 labor hours.It desires a $12 profit
Waterways has budgeted for 5,760 labor hours.It desires a $12 profit margin per hour of labor and 15% profit on materials. It estimates the total invoice cost of materials in 2009 will be $642,000. Instructions (a) Compute the rate per hour of labor.(Round to two decimal places.) (b)Compute the material loading charge.(Round to two decimal places.) (c) Waterways has received a request for a bid to do a parkway for the city.The irrigation man- ager estimates that it will take about a month to complete the project and require 480 hours of labor and $80,000 of materials.Compute the total estimated bid for the parkway project.
WCP8 Waterways uses time and material pricing when it bids on
WCP8 Waterways uses time and material pricing when it bids on irrigation projects.Budgeted data for 2009 are as follows. Waterways Corporation Budgeted Costs for Irrigation Projects for 2009 Material Time Loading Charges Charges Labor wages (5,760 hours) $240,000 Supervisor’s salary $60,000 Clerical and accountant wages 60,000 4,000 Irrigation supplies manager 40,000 Overhead 53,950 21,000 Total $353,950 $125,000 Waterways has budgeted for 5,760 labor hours.It desires a $12 profit margin per hour of labor and 15% profit on materials. It estimates the total invoice cost of materials in 2009 will be $642,000. Instructions (a) Compute the rate per hour of labor.(Round to two decimal places.) (b)Compute the material loading charge.(Round to two decimal places.) (c) Waterways has received a request for a bid to do a parkway for the city.The irrigation man- ager estimates that it will take about a month to complete the project and require 480 hours of labor and $80,000 of materials.Compute the total estimated bid for the parkway project.