macro 2nd homework
If the government imposes a minimum wage of $2, how many workers will be unemployed?
0
Metropolis National Bank is currently holding 2% of its deposits as excess reserves. Metropolis National Bank AssetsLiabilities Reserves $60,000 Deposits $500,000 Loans $440,000 Metropolis National Bank is currently holding 2% of deposits as excess reserves. What is the reserve requirement?
10 %
Refer to Figure 7. If the government imposes a minimum wage of $5, how many workers will be unemployed?
2000
Figure 4. On the graph, x represents risk and y represents return. Point A represents a situation in which
All of the above are correct.
Refer to Figure 2.The position and/or slope of the Supply curve are influenced by
All of the above are correct.
Refer to Scenario 1. Assuming the only other thing Tazian banks have on their balance sheets is loans, what is the value of existing loans made by Tazian banks?
6,900 million tazes
Workers waiting for jobs to open up is most closely associated with
structural unemployment.
When the Fed buys government bonds,
the money supply increases and the federal funds rate decreases.
If the minimum wage is set at $125, then
the quantity of labor supplied will equal 35.
figure 1. Figure 1 shows the loanable funds market for a closed economy. Starting at point A, the enactment of an investment tax credit would likely cause
the quantity of loanable funds traded to increase to $125 and the interest rate to rise to 7% (point C).
Figure 2. On the horizontal axis of the graph, L represents the quantity of loanable funds in billions of dollars. Which of the following events could explain a shift of the demand-for-loanable-funds curve from D1 to D2?
The tax code is reformed to encourage greater investment.
Figure 5. The figure shows a utility function for Dexter. In what way(s) does the graph differ from the usual case?
The utility function shown here is bowed downward (convex), whereas in the usual case the utility function is bowed upward (concave).
Reserves$1,200 Deposits$9,000 Loans$8,000 Debt$800 Short-term securities$800 Capital (owners' equity)$200 The required reserve ratio is 12 percent. Which of the following is true?
This banks reserve ratio is 13.3 percent.Its excess reserves are $120.
Which of the following is correct?
Unionized firms pay wages above the competitive equilibrium level.
Figure 3. The figure shows two demand-for-loanable-funds curves and two supply-of-loanable-funds curves. A shift of the supply curve from S1 to S2 is called
a decrease in the supply of loanable funds.
John has been a sky diver for many years. When the company John works for offers its employees the option to purchase a life insurance policy, John purchases a policy. This illustrates the problem of
adverse selection.
The leverage ratio is calculated as
assets divided by bank capital
During a financial crisis the possibility of bank failures rose. An increase in the likelihood of a bank failing shifts demand for its stock
left, so the price falls.
The slope of the supply of loanable funds is based on the logic that an increase in interest rates
makes saving more attractive.
Suppose that Thom experiences a greater loss in utility if he loses $50 than he would gain in utility if he wins $50.This implies that Thom's
marginal utility diminishes as wealth rises, so he must be risk averse.
A company unexpectedly announces a product recall due to safety concerns about its product. According to the efficient markets hypothesis, this news should
reduce the price of the company's stock.
All else equal, when people become more optimistic about a company's future, the
demand for the stock and the price will both rise.
We interpret the meaning of "loanable funds" as the
flow of resources available to fund private investment.
In the early 1900s, Henry Ford introduced a
high-wage policy, and this policy produced many of the effects predicted by efficiency-wage theory.
Refer to Table 1. Metropolis National Bank is currently holding 2% of deposits as excess reserves. Assume that no banks in the economy want to hold excess reserves and that people only hold deposits and no currency. How much does the money supply ultimately increase when Metropolis National Bank lends out its excess reserves? Correct!
$100k
The MonetaryPolicy of Tazi is controlled by the country's central bank known as the Bank of Tazi. The local unit of currencyis the taz. Aggregate banking statistics show that collectively the banks of Tazi hold 300 million tazes of required reserves, 75 million tazes of excess reserves, have issued 7,500 million tazes of deposits, and hold 225 million tazes of Tazian Treasury bonds. Tazians prefer to use only demand deposits and so all money is on deposit at the bank. Assume that banks desire to continueholding the same ratio of excess reserves to deposits. What is the reserve requirement and the reserve ratio for Tazian Banks?
4 percent, 5 percent
Refer to Figure 5. Suppose Dexter begins with $1,300 in wealth. Starting from there,
the pleasure of adding $500 to his wealth would exceed the pain of losing $500 of his wealth.
