New Semester Started Get 50% OFF Study Help! --h --m --s Claim Now

Question Answers

Textbooks

Find textbooks, questions and answers

Oops, something went wrong!

Change your search query and then try again

Result Not Found

Books FREE
Study Help
Tutors
AI Study Planner NEW
Sell Books

Search
Sign In
Register

study help
business
macroeconomics principles

Principles Of Macroeconomics 8th Edition Sayre, J.E.; Morris, A.J. - Solutions

4. (LO 3) What are the full names and functions of the following organizations: WTO, EU, NAFTA, OECD?
3. (LO 4) Who gains and who loses when a country enters into a free trade agreement?
2. (LO 1) What is meant by factor endowment?
1. (LO 3) What is meant by terms of trade?
Suppose that both countries are presently producing combination C.h) Fill in the blanks in Table 10.23.Now suppose that each country specializes in the product in which it has a comparative advantage. i) Show the results in Table 10.24.j) What is the joint gain from trade?Wheat: Wine:Suppose that
(LO 2, 3) Suppose that Richland and Prosperity have the output figures shown in Table 10.21.TABLE 10.21 AVERAGE PRODUCT PER WORKER Wheat Wine Richland 4 bushels or 2 barrels Prosperity 2 bushels or 6 barrels Assume that cost and productivity remain constant.a) What is the opportunity cost of
13. (LO 2, 3) Table 10.20 shows the annual demand and supply of cell phones in Canada (in tens of thousands), where DC is the domestic demand, DW is the rest of the world demand, SC is the Canadian supply, and SW is the quantity supplied by manufacturers in the rest of the world.a) Complete the
12. (LO 2, 3) Suppose three countries have productivity data as shown in Table 10.19.a) What is the cost of wheat in each country?In Alpha, 1 unit of wheat costs .In Beta, 1 unit of wheat costs .In Gamma, 1 unit of wheat costsb) Which country can produce wheat the most cheaply (comparatively)?c)
11. (LO 2, 3, 4) Latalia has a labour force of 12 million, half in the wool industry and half in rice farming. The labour productivity in the wool industry is 40 kilos per worker per year, and in rice farming it is 100 kilos per worker per year. Latalia has discovered that the international terms
10. (LO 5) Suppose the Canadian demand for and the Japanese supply of cars to Canada is shown in Table 10.18 (quantities in thousands).a) The present equilibrium price is $ and quantity is (thousand).b) Suppose that the Canadian government imposes a$2000 per car tariff on imported Japanese cars.
9. (LO 2) The incomplete Table 10.17 shows the productivity levels of producing beer and sardines in Canada and Mexico.What should be the Mexican productivity per worker in the sardine industry for no advantage to be gained from trade?
8. (LO 4) Table 10.16 shows the production possibilities for Canada and Japan. Suppose that, prior to specialization and trade, both Canada and Japan are producing combination C.a) In Figure 10.15, draw the production possibilities curve for each country, and indicate their present output
7. (LO 1, 5) Table 10.15 shows the market for wool in Canada, which is closed to tradea) What is the present equilibrium price and domestic production?Price:Domestic production:b) Suppose that Canada now opens to free trade and the world price of wool is $2000 per tonne. How much wool will Canada
6. (LO 2) The graph in Figure 10.14 shows the domestic supply of and demand for mangos in India.The world price is $16 a case, and India is open to free trade.a) Will India export or import mangos?b) What quantity will domestic producers supply?c) What quantity will India export or import?d) If the
5. (LO 2, 3) Table 10.14 shows the production possibilities for Concordia and Harmonia.a) What are the costs of the two products in each country?Concordia: 1 unit of pork costs 1 unit of beans costs Harmonia: 1 unit of pork costs 1 unit of beans costsb) What products should each country specialize
4. (LO 2) The table below shows the productivity for the countries of Yin and Yanga) If the working populations of Yin and Yang are both 40 million, divided equally between the two industries in each country, how many machines and bread are currently being produced in Yin and Yang?b) If the two
3. (LO 2, 3) The table below shows the maximum output levels for Here and There.a) What is the cost of 1 unit of cloth and a computer in Here?1 unit of cloth: 1 computer:b) What is the cost of 1 unit of cloth and a computer in There?1 unit of cloth: 1 computer:c) In what product does each country
2. (LO 2) In Onara, the average worker can produce either five bags of pummies or three kilos of clings, whereas in Traf the average worker can produce either four bags of pummies or six kilos of clings. Which country can produce pummies more cheaply and which can produce clings more cheaply? Show
1. (LO 3) If the terms of trade for the country of Onara equals 0.9 and the average price of its imports is 1.4, what is the average price of its exports?
7. Which industry in Canada do you feel deserves protection in each of the following categories?a) strategically importantb) infantc) culturally importantd) environmentally important
6. In Table 10.12, if the demand for wine in Germany increased by nine (million litres) at every price, how much wine would now be produced in Germany and how much would be imported from France?
5. From the data contained in Figure 10.7 or Table 10.6, how many beans can the United States obtain if it is self-sufficient and producing 240 million bushels of wheat? If, instead, it specializes in wheat production and can trade at terms of 1 bushel of wheat = 2 bushels of beans, how many
4. The following table shows the average productivity in Freedonia and Libraland:What about 1 bushel of pears = 1 bushel of apples? 1 bushel of pears = 1.75 bushels of apples?
3.a) Given the data in question 2, what is the total output of the two countries for both products?b) If each country were to specialize in the product in which it has a comparative advantage, what will be the total output of the two countries for both products?c) What will be the gains from trade?
2. Suppose that the labour force in Freedonia is 10 million. Six million people are producing apples, and the rest are producing pears. Libraland’s labour force is 16 million, divided equally between the production of apples and the production of pears. The labour productivity in the two
1. The following table shows the productivity per worker in the beer and wine industries of Freedonia and Libraland:a) Which country should specialize in which product?b) Suppose that initially the working population of each country is 20 million, with 10 million working in each industry. What is
LO5 Identify some arguments against free trade.
LO4 Describe why some groups win and others lose as a result of freer trade, and explore trade restrictions.
LO3 Explain how the gains from trade are divided between trading partners.
LO2 Explain why nations import certain goods, even though they can be made more cheaply at home.
LO1 Explain the importance of international trade and why nations trade with each other.
10. (LO 3) What do monetarists say about the asset demand for money? Why do they believe this?
9. (LO 2) Would Keynesian monetary policy be more effective in dealing with a recessionary gap or an inflationary gap? Why?
8. (LO 2, 3) Explain how an increase in money supply affects the interest rate, investment, and income. How do the Keynesians and the monetarists differ in their views of this?
7. (LO 2) Why does contractionary monetary policy imply a leftward shift in the aggregate demand curve?
6. (LO 1) How does a surplus of money disappear?
5. (LO 1) Justin’s grandfather left him a $10 000 bond with exactly one year left until redemption. Its coupon rate is 8 percent per annum. The current rate of interest on similar bonds is 5 percent. Unfortunately, Justin has to sell this bond to raise money for tuition next semester.Ignoring
4. (LO 3) Table 9.3 shows actual data for the Canadian economy for the period 1993–1997 (all money figures in billions of dollars). For each year, calculate the velocity of money. (Hint: You may need to rearrange the equation of exchange and divide by 100.)What is the value of the velocity of
3. (LO 1) What do we mean when we say a treasury bill is sold at a discount?
2. (LO 1) What are the two determinants of the transactions demand for money?
1. (LO 1) Explain why (or why not) each of the following will cause an increase in the transactions demand for money.a) an increase in price levelb) an increase in real incomec) an increase in nominal incomed) an increase in both price level and nominal income by same percentage
(LO 1, 2, 6) The money market in the country of Everton is depicted in Figure 9.16 (all figures are in billions of dollars).The investment demand curve is shown in Figure 9.17 and the product market in Figure 9.18. Both the money market and the product market are in equilibrium.Suppose that the
12. (LO 2) Table 9.2 shows the effect of changes in various economic variables in the countries of Beckland and Heineken.a) What is the effect of an increase of $10 million in money supply on the price level and the level of real GDP in each country?Beckland Price change: GDP change:Heineken Price
11. (LO 3) Use Figure 9.15 to answer the following questions.a) Which graph in Figure 9.15A or B depicts the Keynsian view of the money market? Which is the monetarist view?b) Which graph in Figure 9.15C or D depicts the Keynsian view of investment demand? Which is the monetarist view?c) According
10. (LO 1) Adriana’s cousin has sent her a $20 000 bond, which pays annual interest of $1600. The bond has two years left until redemption. Adriana wants to cash in the bond to buy a truck. The current interest rate is 5 percent.Ignoring brokerage and other costs, approximately how much will
9. (LO 1) Assume that the original price of a three-month treasury bill with a redeemable value of $100 was $96, and one month later it was sold for $96. What is the change in the rate of return on this bill?
8. (LO 1) Table 9.1A shows abbreviated balance sheets for the central bank in the country of Beckland. Table 9.1B shows tables for its whole commercial banking system.The target reserve ratio for the banks is 10 percent.(All figures are in billions of dollars.)a) Suppose that the Bank of Beckland
7. (LO 2) Figure 9.14 shows information for the economy of Heart.a) In figure A, illustrate the effect of an increase in money supply, which reduces the interest rate to four percent, and in figure B, the effect of the lower interest rate on the level of investment spending.b) What is the new level
6. (LO 2) Figure 9.13 shows information for the economy of Tantalus.a) If money supply is equal to 60, what are the values of equilibrium interest rate and investment spending?Interest rate: % Investment:b) If money supply is equal to 100, what are the values of equilibrium interest rate and
5. (LO 2) Figure 9.12 illustrates the money demand and investment demand for the economies of Pabst and Kokanee.a) If money supply is increased by 10, what will be the new interest rate?Pabst: Kokanee:b) What will be the increase in investment spending as a result of this new interest rate?Pabst:
4. (LO 1) Andra has just been given a $5000 one-year bond with a coupon rate of 7 percent per year. However, she needs the money now and is surprised to find that the market value of the bond has increased to $5200. What rate of return (interest) would a prospective buyer earn on this bond?
3. (LO 3) In the country of Juventus, the money supply is equal to $40 (billion), the velocity of circulation is 5, and real GDP is $100 (billion).a) What is the price level in Juventus, and what is the value of its nominal GDP?Price level: Nominal GDP:b) If money supply increases by 20 percent,
2. (LO 2) The economy of Carlsberg is presently in equilibrium but is suffering a recession as depicted in Figure 9.11.The central bank of Carlsberg is introducing an expansionary monetary policy to get the economy back to the full-employment level of real GDP.a) What increase in aggregate demand
1. (LO 3) In the country of Sparta, money supply equals 11 million drams, real GDP is 70 million drams, the price level is 1.1, and the velocity of money is 7.a) What is the value of its nominal GDP?b) If, in the next year, V remains constant and real GDP increases to 77 million drams, what must
10.a) If M is $100, P is $2, and Q is 500, what is the value of the velocity of money?b) Given the same parameters as in (a), if the velocity of money stays constant, and assuming the economy is at full employment, what will be the level of P if M increases to $120?
9. What would be the effect on the level of investment and real income if the money supply were reduced?
8. If the price level increases, what effect will this have on interest rates, investment, and the aggregate quantity demanded?
7. If the Bank of Canada wanted to decrease the money supply, should it buy or sell government bonds?
6. Which of the four former goals of the Bank of Canada are in conflict with each other, and which are compatible?
5. Suppose that the banking system’s target reserve ratio is 10 percent and the Bank of Canada switches $100 million of government funds from government’s account with the Bank of Canada to an account at a commercial bank. Since neither government’s accounts with commercial banks nor the
4. Here are balance sheets for the commercial banking system and for the Bank of Canada (all figures are in billions). Show the effects on the balance sheets of both the Bank of Canada and the commercial banks when the Bank of Canada buys $2 billion worth of securities directly from the commercial
3. In terms of the banking system’s ability to create money, what difference, if any, does it make if the Bank of Canada buys bonds from a commercial bank rather than from a member of the public?
2. Assume that the money demand for a particular economy is as follows. (All figures are in billions of dollars.)Rate of Asset Transactions Total Interest (%) Demand ($) Demand ($) Demand ($)12 50 80 11 55 80 10 60 80 9 65 80 8 70 80 7 75 80 6 80 80 Complete the table, and answer these questions:a)
1. Assume you are given the following asset demand for an economy:a) Assume that the nominal GDP in this economy is $800 and that the transaction demand for money is equal to 10 percent of nominal GDP. Draw the total demand for money curve.b) If the money supply is $150 billion, draw in the money
LO7 List some of the recent criticisms of anti-inflationary monetary policy
LO6 Explain why anti-inflationary policy emphasizes targeting the interest rate.
LO5 Explain why most central banks around the world believe targeting the interest rate is the most effective monetary tool.
LO4 Explain why many economists are critical of attempts to target the money supply.
LO3 Explain why monetarists believe that controlling the money supply is vital.
LO2 Explain how the Keynesian transmission process works by targeting the money supply.
LO1 Describe the determinants of money demand and supply, and explain how equilibrium in the money market is achieved.
10. (LO 2) Many people believe that the ability to buy goods with credit cards makes such cards money. Explain why a credit card is not money. Do you think that debit cards are money?
9. (LO 3) What does it mean for a bank to be over-reserved?
8. (LO 3) What is included in a list of a bank’s assets?
7. (LO 2) Many students think that government (or the Bank of Canada) still has a pile of gold somewhere that “backs”our money. Since this is not true, what does back Canadian money?
6. (LO 1) What two key factors resulted in the early merchant banks becoming modern commercial banks?
5. (LO 1) What is the earliest origin of money?
4. (LO 2) What is meant by the term the spread?
3. (LO 1) What are the three functions of money?
2. (LO 3) In which of the following circumstances has the money supply changed?a) Mario deposits $1000 at his bank.b) Mario withdraws $1000 from his bank.c) Mario lends Luigi $1000.d) The bank lends Mario $1000.e) Mario lends the bank $1000.
1. (LO 3) Name the necessary bookkeeping entries in the accounts of the Friedman Bank to record the following transactions.a) The Friedman Bank sells some of its old computers for$20 000 in cash.b) The bank buys $50 000 worth of government bonds from one of its customers and pays by cheque.c) The
(LO 3) Table 8.11 is the current balance sheet for the Maple Leafs Bank. Answer the following questions, assuming that the bank’s target reserve ratio is 5 percent.a) Is this bank over- or under-reserved, and by what amount?b) Suppose that a loan, in the amount of the excess reserves found in
11. (LO 3) Rearrange the items in the balance sheet shown in Table 8.10 so each is in the correct position. Change one figure only to reflect the bank achieving a 5 percent target reserve ratio
10. (LO 3) Table 8.9 is the combined balance sheet for all the banks in a banking system. Each bank has a target reserve ratio of 4 percent.a) Fill in the blanks in column 1 reflecting the complete effect of all excess reserves being loaned out.b) What is the maximum possible increase in the money
9. (LO 3) Table 8.8 is the balance sheet for all the banks combined in the banking system.a) Which one of the figures is part of the money supply?b) If all banks maintain 100 percent reserves, what happens to the money supply eventually if $500 cash is deposited into one of the banks in the
8. (LO 3) The central bank of Muldovia has issued$100 000 in Muldovian dollars. What is the size of the Muldovian money supply under the following circumstances?a) Muldovians have deposited none of the currency in Muldovia’s banks.b) Muldovians have deposited all of the currency in Muldovia’s
7. (LO 3) Table 8.7 is the balance sheet for the Senators Bank. The target reserve ratio is 10 percent.a) What is the size of the bank’s excess reserves?b) Change the balance sheet in columns 1 to show the effect of the bank loaning out an amount equal to its excess reserves.c) Now change the
6. (LO 3) Fill in the blanks in the balance sheet of the Flames Bank in Table 8.6, assuming that the value of fixed assets is the same as shareholders’ equity and that the bank is fully loaned up. The target reserve ratio is 5 percent.
5. (LO 2) Answer the questions below from the data in Table 8.5. (All figures are in billions of dollars.)a) What is the total currency in circulation?b) How much larger is M1 than the total currency in circulation?c) How much larger is M2 than M1?d) How much larger is M3 than M2?
4. (LO 3) Table 8.4 is the balance sheet for all banks combined in the banking system. All banks have a target reserve ratio of 8 percent.a) What is the amount of excess reserves?b) What is the maximum amount that loans and deposits can be increased?c) Assuming that the system becomes fully loaned
3. (LO 3) Table 8.3 is the balance sheet for the Oilers Bank, which has a target reserve ratio of 5 percent.a) By how much is the Oilers Bank over- or under-reserved?b) If the bank makes a loan equal to the excess reserves and the borrower writes a cheque (for the full amount of the loan) to
2. (LO 3) What is the value of the money multiplier if the target reserve ratios of all banks in the banking system are as follows?a) 2 percentb) 5 percentc) 8 percentd) 12 percent
1. (LO 3) Table 8.2 shows the balance sheet of the Bruins Bank.By how much is the Bruins Bank over- or under-reserved, if the target reserve ratio isa) 2 percentb) 5 percentc) 8 percentd) 12 percent
11. The J.M.K. Bank has demand deposits of $60 000 and reserves of $6000.a) By how much can it increase its loans if the target reserve ratio is 8 percent?b) By how much can it increase it loans if the target reserve ratio is 5 percent?c) Assume the same $60 000 and $6000 applied to the entire
10. What will be the increase in total deposits in the whole banking system following a new deposit of $2000 into the XYZ bank in each of the following circumstances?a) a target reserve ratio of 20 percentb) a target reserve ratio of 5 percent
9.a) Given the Islanders’ Bank balance sheet in question 8, how much does it have in excess reserves if the target reserve ratio is eight percent?b) How much does it have in excess reserves if the target reserve ratio is 5 percent?
8. The following is the balance sheet for the Islanders’ Bank.Reserves 5 000 Demand deposits 60 000 Loans 41 000 Shareholders’ equity 10 000 Securities 18 000 Fixed assets 6 000 70 000 70 000a) If the target reserve ratio is 8 percent, what is the amount of the bank’s target reserves?b) If
7. Assume that the nation’s banking system is over-reserved by$20 million. What is the value of the money multiplier, and what is the maximum possible expansion in the money supply if the target reserve ratio isa) 10 percentb) 2 percentc) 5 percent
6. Give the necessary bank bookkeeping entries for each set of circumstances below.a) The bank makes a $2000 loan to Fadia.b) Fadia writes a $2000 cheque to Middle East Travel, which has its accounts at a different bank.
5. Given the following data (all in billions of dollars) what are the values of M1, M2, and M3?Coins 13 Certificates of deposit 137 Demand deposits 72 Notice and personal term deposits 215 Notes 27

Showing 3700 - 3800 of 6280

First
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
Last

Step by Step Answers

Services

Sitemap
Fun
Definitions
Become Tutor
Used Textbooks
Study Help Categories
Recent Questions
Expert Questions
Campus Wear
Sell Your Books

Company Info

Security
Copyrights
Privacy Policy
Terms & Conditions
SolutionInn Fee
Scholarship
Online Quiz
Give Feedback, Get Rewards

Get In Touch

About Us
Contact Us
Career
Jobs
FAQ
Student Discount
Campus Ambassador

Secure Payment

Download Our App

© 2026 SolutionInn. All Rights Reserved