How many units of Foreign Currency can be exchanged for $1. This is the _________ quote.
Indirect Quote
100
What is the definition of the Govt. Multiplier?
Change in Y divided by change in G
100
What are the three functions of money?
Medium of Exchange, Store of Value, Unit of Account
100
What is the interest rates that banks charge each other called?
Federal Funds Rate
200
Definition of MPC
What is the change in C divided by change in Y
200
The exchange rate goes from $12/Yen to $10/Yen. The Dollar has ________ and the Yen has _____________.
Appreciated; Depreciated
200
If the MPC = 0.8, what is the Govt. Multiplier?
5
200
If deposits = $10000, Reserves = $1000, Loans = $9000 and RRR = 1% then excess reserves =?
$900
200
When RRR goes up and Taxes fall what happens to interest rates?
Interest rates will go up
300
When my income goes from 1200 to 1400 my consumption goes from 1100 to 1180. What is my MPC?
0.4
300
When the Rupee appreciates relative to the US dollar, Indian goods become __________ to Americans.
more expensive
300
If the MPC is 0.9 what will happen to GDP if the government cut spending by $2 million.
GDP will fall by $20 million
300
Deposits = $50000, Reserves = $5000, Excess reserves = $1000. What is the RRR?
8%
300
What happens to the Money Supply when there is an Open Market Sale?
MS decreases
400
If my income goes from 1000 to 900, my saving goes from 200 to 130. What is my MPC?
MPC = 0.3
400
If the European Central Bank conducts expansionary monetary policy in Europe the Euro will __________ relative to the dollar.
depreciate
400
If the govt. multiplier is 4, what should the government do to G to raise GDP by $1000?
Raise G by $250
400
If the RRR is 4% and someone deposits $2000 into a bank account how much will be the total change in deposits as a result of the money multiplier process?
$50000
400
What happens to interest rates when the government cuts taxes?
When taxes fall, GDP increases which increases Money Demand. This will increase interest rates
500
My Income = 100 and C = 80, What is my MPC?
Not enough info.
500
Given exchange rates of $20/Yen and $10/Euro. What is the Yen/Euro exchange rate?
0.5 Yen/Euro
500
If the MPC = 0.9 what should the govt. do to taxes to increase GDP by $4500?
Cut taxes by $500
500
If the RRR is 4% and someone deposits $2000 into a bank account how much will be the total change in money supply as a result of the money multiplier process?
$48000
500
Who is the current chair of the Federal Reserve Board of Governors