Answer the question based on the following price and output data over a five-year period for an economy that produces only one good. Assume that year 2 is the base year.
Refer to the above data. In year 4, nominal GDP would be:
A.
$60
B.
$90
C.
$120
D.
$316
B.
$90
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The FUN Bank has no excess reserves when a new deposit of $20,000 is made. The desired reserve ratio is 5 percent. After the deposit, but before making any loans, how much does The FUN Bank have in excess reserves?
A) $19,000 B) $20,000 C) $1,000 D) $9,000 E) $21,000
Refer to Figure 3.2. If Wilma plays North and Betty plays West, what is Wilma's payout?
A) 10 B) 15 C) 21 D) 24
If the government increases taxes while holding expenditures constant,
A) the bond supply curve will shift to the left and the equilibrium interest rate will fall. B) the bond supply curve will shift to the right and the real interest rate will fall. C) government borrowing will be increased. D) the government's deficit will increase.
An increase in the price of the U.S. dollar in terms of euros will cause, ceteris paribus,
A. A lower European inflation rate. B. European goods to be more expensive to residents of the United States. C. European goods to be cheaper to residents of the United States. D. Higher interest rates in the United States.