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May 29, 2015

Homework Help: macroeconomics

Posted by youngcity on Tuesday, December 16, 2008 at 9:12pm.

1
The most important reason for the slope of the aggregate demand curve is that as the price level _______.
1) increases, interest rates decrease, and investment increases
2) decreases, interest rates decrease, and investment decreases
3) increases, interest rates increase, and investment decreases
4) decreases, interest rates increase, and investment increases

2
When there is an adverse supply shock _______.
1) unemployment rises and the short-run Phillips curve shifts left
2) unemployment falls and the short-run Phillips curve shifts left
3) unemployment rises and the short-run Phillips curve shifts right
4) unemployment falls and the short-run Phillips curve shifts right

3
Suppose a bank has a 10 percent reserve requirement, $4,000 in deposits, and has loaned out all it can given the reserve requirement.
1) It has $400 in reserves and $3,600 in loans.
2) It has $40 in reserves and $3,960 in loans.
3) It has $800 in reserves and $3,200 in loans.
4) It has $444 in reserves and $3,556 in loans.

4
Whitney puts money in a savings account at her bank earning 3.5%. One year later she takes her money out and notes that while her money was earning interest, prices rose 1.5%. Whitney earned a nominal interest rate of _______.
1) 3.5% and a real interest rate of 5%
2) 5% and a real interest rate of 2%
3) 5% and a real interest rate of 3.5%
4) 3.5% and a real interest rate of 2%

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