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Homework answers / question archive / Week 6: End of Week Quiz Question 1 12 / 12 pts If the money base is $500, the reserve ratio is
Question 1
12 / 12 pts
If the money base is $500, the reserve ratio is .20 and the public holds no currency, then M2 is $
If instead, $100 of currency is held by people outside the banks, M2 is $
Again assuming that people hold $100 of currency, if half of deposits are checking and half are saving then M1 is $
Now return to assuming that no currency is held by the public. If the central bank wants to increase the M2 by $100, they should ________ treasuries worth $ ______. This will probably cause short-term (but not necessarily long-term) interest rates to _________. (increase/decrease)
8 / 8 pts
A certain country has a working-age population of 20,000 people. Of these, 12,000 are employed and 1,000 are unemployed.
Note that these answers are percentages.
a. The labor force participation rate is %
b. The unemployment rate is %. (Round to one decimal place.)
c. If the natural rate of unemployment is 5%, then cyclical unemployment must be %. (Round to one decimal place.)
d. Now imagine that 200 of the unemployed workers become "discouraged." What does the unemployment rate become? %. (Round to two decimal places.)
Question 1
12 / 12 pts
All answers are integers.
If the money base is $500, the reserve ratio is .20 and the public holds no currency, then M2 is $ .
If instead, $100 of currency is held by people outside the banks, M2 is $ .
Again assuming that people hold $100 of currency, if half of deposits are checking and half are saving then M1 is $ .
Now return to assuming that no currency is held by the public. If the central bank wants to increase the M2 by $100, they should treasuries worth $ . This will probably cause short-term (but not necessarily long-term) interest rates to . (increase/decrease)
Answer 1:
Correct!2500
Answer 2:
Correct!2100
Answer 3:
Correct!1100
Answer 4:
Correct!buy
Answer 5:
Correct!20
Answer 6:
Correct!decrease
8 / 8 pts
A certain country has a working-age population of 20,000 people. Of these, 12,000 are employed and 1,000 are unemployed.
Note that these answers are percentages.
a. The labor force participation rate is %
b. The unemployment rate is %. (Round to one decimal place.)
c. If the natural rate of unemployment is 5%, then cyclical unemployment must be %. (Round to one decimal place.)
d. Now imagine that 200 of the unemployed workers become "discouraged." What does the unemployment rate become? %. (Round to two decimal places.)
Answer 1:
Correct!60
Answer 2:
Correct!7.7
Answer 3:
Correct!2.7
Answer 4:
Correct!6.25
Quiz Score: 20 out of 20