HOW DO I MACRO MATH?
If the reserve requirement is 5%, the money multiplier is
What is 20?
What is decrease?
A PPC with a straight line indicates a __________ relationship while a bowed outward PPP represents ________________.
What is direct and increasing opportunity costs?
Government actions to change taxation or government spending is called?
What is fiscal policy?
Annie America buys 17 Japanese comic books. Japan's current account would move towards ________.
What is surplus?
If 5 people are unemployed, 10 people are employed, and there are 150 people ages 16-65, what is the labor force participation rate?
What is 10%?
A country whose currency has appreciated will see a ____________ in exports and a _________ in AD.
On the Phillips Curve graph, an increase in unemployment rates and inflation rates would be shown how?
What is the SRPC shifting to the right (upward)?
To fight inflation, a central bank could use open market operations. How would they do it?
What is sell bonds?
If $1 USD is exchanged for 2 British lbs on the FOREX, a British made hat that costs 20lbs would cost how much in $?
What is $10?
The MPC is .50. Investment spending declined by $2 billion this year. What is the total effect on RGDP?
What is $4 billion?
What are (1) decrease, (2) increase, (3) decrease or stay the same?
What is changing administered interest rates (or more specifically, the interest on reserve balances rate (IORB)?
Country X has recently had a spike in inflation, but also an increase in unemployment. What type of policy could it use that wouldn't make one of the problems worse (while curing the other)?
What are 'supply side fiscal policy' or deregulate business, lower business taxes, pay subsidies, etc.)?
If a Chinese investor purchased a Florida apartment complex, the U.S. current account would move towards_________.
Market Basket values: Year1=$100, Year 2= $120, Year 3= $180, Year 4= $240. If Year 2 is the base year, what is the CPI index for Year 4?
What is 200?
Country Z's inflation rate has increased relative to Country X. Country X's capital financial account will ___________.
An expansionary monetary policy would _________ interest rates on the money market graph, and lead to a(n) ____________ in demand for the country's currency.
What is decrease, decrease?
What is lower the IORB rate (or lower admin. interest rates)?
Japan and India are trading partners. Japan's government implements an expansionary fiscal policy but causes crowding out due to high interest rates. Based on changes to the interest rate, India's currency will _________ on the FOREX.
What is depreciate?
Banks hold no excess reserves, all money is redeposited, RR is 10%. J deposits $200. How much will total money supply change?
What is $1,800?
The central bank sells bonds. Based on the interest rate change, the money supply will (1)_____, AD will (2)________, unemployment will (3)______, price level will (4)_______, capital inflows will (5)_______, the currency will (6)_______.
What are (1) decrease, (2) decrease, (3) increase, (4) decrease, (5) increase (5) appreciate.
A contraction monetary policy would _________ the supply of money and _________ the supply of loanable funds. If met with an expansionary fiscal policy, the nominal interest rate and real interest rates would __________.
What is decrease, decrease, increase?
Assume full employment. The government wants to increase GDP with the smallest change possible to interest rates. What specific fiscal and monetary policies should it use?
What are (1) increase G spending (or cut taxes), and (2) increase the money supply (buy bonds, lower RR, lower DR, lower IORB/admin. int. rates?
The U.S. and France are trading partners. France experiences a higher inflation rate. Based on the inflation rate, the French currency will __________ and its capital financial account will move towards ___________.
What is depreciate and surplus?