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Member
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Nov 25 2013 05:52pm
I don't have time/patience to answer all these questions, there are about 20 in total. PM me if you can do these questions, we can work out the details to do all, or some. Thanks.

Here are some of the questions:
What determines whether a financial asset is included in the M1 money supply? Why are interest-earning checkable deposits included in M1, whereas interest-earning savings accounts and Treasury bills are not?

Why are banks able to maintain reserves that are only a fraction of the demand and savings deposits of their customers? Is your money safe in a bank? Why or why not?

What is the Federal Funds Interest rate? if the Fed wants to use open market operations to lower the federal funds rate, what action should it take?

Suppose that the reserve requirement is 10 percent and the balance sheet of the People's National Bank looks like the accompanying example.
a. What are the required reserves of People's National Bank? Does the bank have any excess reserves?
b. What is the maximum loan that the bank could extend?
c. Indicate how the bank's balance sheet would be altered if it extended this loan (show the new t-account).
d. Suppose that the required reserves were 20 percent. If this were the case, would the bank be in a position to extend any additional loans? Explain.
Assets
Vault Cash $20,000
Deposits at Fed $30,000
Securities $45,000
Loans $120,000

Liabilities
Checking deposits $200,000
Net Worth $15,000


Will increases in government spending financed by borrowing help promote a strong recovery from a severe recession. Why or why not?

Does fiscal policy have a strong impact on aggregate demand? Did the shift of the federal budget from deficit to surplus during the 1990s weaken aggregate demand? Did the government spending increases and large budget deficits of 2008–2011 strengthen aggregate demand? Discuss.

What is the current rate of unemployment (See bls.gov and indicate the month you are reporting)? How rapidly has GDP grown during the past 3 quarters (See bea.gov and state the quarterly growth rate for each year)? What do these figures indicate about the validity of the Keynesian view?

Are changes in discretionary and fiscal policy likely to be instituted in a manner that will reduce the ups and downs of the business cycle? Why or why not?
Member
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Nov 25 2013 06:06pm
How much are you paying :P
Member
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Nov 26 2013 10:39am
This is pretty trivial stuff. Most citizens should know this kind of information (though they don't), and especially someone taking an economics class should, or at least make an attempt to.
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