Which of the following is not included in M2 measure of the money supply?

Q: QUESTION 5 1. If GDP grew 3% in 1970, 2.2% in 1971 and 2.5% in 1972 then, what is the average annual…

A: GDP or Gross Domestic product is the total value of the final goods and services produced in an…

Q: 48-49. Harper Manufacturing has realized the following annual sales dollar amounts: 2020:…

A: The Arithmetic Average Annual Growth Rate (AAGR) represents the average of year-to-year growth…

Q: Table 13.1 A very simple economy producing three goods: movies, burgers, and bikes. Product Movies…

A: GDP is the gross domestic product. GDP is defined as the market value of all the final goods and…

Q: If the demand and supply curve for cell phones is given by: D = 80 - 4P, S = 40 + 6P In a market…

A: The demand curve is the downward-sloping curve. The supply curve is the upward-sloping curve. The…

Q: QUESTION 2 1. The situation in which the average of all prices of products is rising is called…

A: “Since you have posted multiple questions with multiple sub parts, we will provide the solution only…

Q: Using both the liquidity preference framework and the supply and demand for bonds framework, show…

A: Procyclical refers to the correlation that exists between goods and services when the economy is…

Q: 1. A distinguishing characteristic of monopolistically competitive market is   A.  price…

A: It can be defined as a form of market in which a numerous amount of buyers and sellers are available…

Q: 10. Which of the following conveys the correct relationship between production levels and…

A: Production alludes to the method involved with making goods or providing services through different…

Q: Why does the Fed seldom use the other two tools (discount rate and reserve requirements) as a way to…

A: The problem asks us why the Fed seldom uses the other two tools (discount rate and reserve…

Q: The Fed would likely use expansionary monetary policy in order to shift AD to the: right because…

A: Expansionary monetary policy works by increasing the money supply faster than usual or reducing…

Q: A company showed equivalent annual cash flows of $400,000 for the first 7 years. If the cash flow in…

A: Equivalent annual cash flow (A) = $400,000Cash flow im year 1 (A1) =$320,000Uniform gradient (G) =…

Q: The official poverty index is based on   Group of answer choices   The number in the family who…

A: The official poverty index is a specific income level or threshold set by a government or relevant…

Q: Nike sells branded sneakers. If it starts at a quantity of 1, as Nike increases quantity sold, its…

A: Marginal revenue (MR) for a company like Nike that sells branded sneakers usually follows a…

Q: The graph shows the market for tutoring at a university. Price (per hour of tutoring) $25 20 15 10…

A: As the price is above equilibrium price, there will be a price floor.The price floor is imposed at…

Q: Scenario: Suppose that the demand is given by: P = 100 - Q Marginal Revenue is MR = 100 - 2Q and…

A: In a monopoly market structure,  There exists a single seller. There exists high barriers to entry…

Q: almonds DE F I I W LM K computers Refer to the figure above. If computers are labor intensive then…

A: a budget constraint represents all the combinations of goods and services that a consumer may…

Q: K Ã₁ K A Consider the following diagram, which depicts the Keynesian model of an open economy with…

A: Economics is the social science that studies how individuals, businesses, and societies allocate…

Q: The equilibrium price in this market is S per notebook, and the equilibrium quantity is Price…

A: In economics, economic equilibrium is a situation in which economic forces such as supply and demand…

Q: If a manufacturer of electronic devices invests $710,000 in equipment for making compact…

A: IRR stands for Internal Rate of Return. It is a financial metric used to assess the profitability of…

Q: Suppose in 2008, the country of Boonton had a GDP of $124200 and a population of 900. In 2009, GDP…

A: The measure of output produced per unit of labor input within a given period is termed labor…

Q: 12. Market equilibrium and disequilibrium The following graph shows the monthly demand and supply…

A: Market equilibrium is achieved when demand for good is equal to supply for goods. Demand =…

Q: Consider a profit-maximizing, perfectly competitive firm that faces a market price equal to $10. Let…

A: Total revenue is the product of price and quantity. Total cost is the cost of producing all the…

Q: PRICE O-Icon Key 20 18 16 14 10 Figure 10-3 Social Value Supply Regand 2468 10 12 14 16 18 20…

A: The social optimum level of output in economics signifies maximum overall society's welfare  through…

Q: Derive the expenditure function for the consumer and the hickson demand function

A: Utility function : U(x1 , x2 ) = (xp1 1+xp2)>1/p Budget Constraint : p1x1 + p2x2 = m Firstly we…

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A: A diagram of the long-term relationship between production costs and different input combinations,…

Q: 5. Susan commutes to work. She can either use public transport or her own car. Her indifference…

A: An indifference curve is a graphical representation used to illustrate a consumer's preferences and…

Q: The economy of Mistania produces Oranges, Pears, and Grapefruits. In 2009, it produced 8 Oranges at…

A: The cost of the fixed basket of the commodities and services will be computed by multiplying the…

Q: Calculate the present value of the cash flow shown below. Interest rates are 10.00% per year,…

A: The time value of money states tha an amount of money is worth more presently compared to  the same…

Q: Suppose that the demand function for cigarettes is given as Qd=800-40P, and the supply function is…

A: A market demand function, regularly denoted as Q or D, represents the complete extent of a unique…

Q: According to the Census Bureau, a household with a ratio of income to poverty threshold of 1.20 is…

A: A household is said to be in poverty if its income falls below the poverty threshold. Many social…

Q: Using both the liquidity preference framework and the supply and demand for bonds framework, show…

A: In this problem, the economy expands given the economic indicators are showing positive signs, while…

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Q: Using the midpoint method, the price elasticity of demand for jackfruit between point A and point B…

A: From the given graph, the quantity demanded at point A is 90,000 pounds. The price at point A is…

Q: You are considering two investment options. In option A, you have to invest $7,000 now and $1,200…

A: The payback period in economics refers to the time it takes for an investment to generate sufficient…

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A: Transfer of Surplus: Transfer of surplus refers to the change in consumer surplus and producer…

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A: The labor demand curve is the value of the marginal product curve.Marginal revenue product is…

Q: Joe owns a few collectible cars from the 1950's. He has decided to go solar and needs money to…

A: Joe is selling one of his collectible cars to get the money he needs to finance his new solar…

Q: Consider the market for pork illustrated in the graph. Suppose initial demand (D¹) is Q=280-20p and…

A: The demand curve is the downward sloping curve. Supply curve is the upward sloping curve.…

Q: Which point gives a customer a highest pleasure based on the below indifference map?

A: Indifference curve represents all the possible consumption bundles that gives the consumer same…

Q: 29) When private expenditures decrease as a result of increased government 29) spending, this is…

A: NOTE: “Since you have posted a question with multiple sub parts, we will provide the solution only…

Q: Find the effective annual interest rate given a quarterly interest rate of 3.3%

A: An interest rate is the percentage at which interest is charged or paid on a loan, investment, or…

Q: The table below shows nominal and real GDP figures for a hypothetical economy. Note that 2022 is the…

A: GDP is the gross domestic product. GDP is defined as the market value of all the final goods and…

Q: S=11c O D+G O A+B p. c per stem B+_D+G 39c A+B+D+G OA+B C+D D+G E 30c 28c Which area corresbonds to…

A: The demand curve is the downward-sloping curve.The supply curve is the upward-sloping curve. The…

Q: PRICE (Dollars per pound) 2 T O Demand 10 20 30 40 50 60 70 BO QUANTITY (Thousands of pounds of…

A: The price elasticity is calculated as the percentage change in quantity demanded divided by the…

Q: Which is true of the two budget lines a X Line a has a higher nominal income than line b The…

A: Budget line shows all the combinations of goods which can be produced at given level of income and…

Q: The speculative demand for money is...    A. positively related to interest rates.    B.…

A: Speculative Demand for Money : The speculative demand for money is the demand for money when the…

Q: 3.18 BOP Transactions. Identify the correct BOP ac-count for each of the following transactions:…

A: BOP stands for the balance of payment. It is a type of statement that keeps the record of all the…

Q: What is the tariff rate by Australia (2021) on the following item: Carrot: HS Code 070610 WTO Tariff…

A: A tariff rate, frequently essentially alluded to as a tariff, is a tax or duty forced by a…

Q: The figure below depicts the economy of Altrua, which is presently in equilibrium. Enter your…

A: Gross Domestic Product (GDP) is a monetary measure of the total economic output or value of all…

Required Reserve and Excess Reserve Analysis

A required reserve is an amount of cash that banks must keep with themselves, which is certain percentage of the deposits made by their customers. Required reserve is a percentage of the bank's deposits that the respective bank must have on each overnight. The percentage rate is set and determined by the nation’s central bank. It is important to have such funds accumulated to meet its uncertain obligations, sudden liabilities and withdrawals. Required reserve is also known as reserve ratio. Reserve ratio is an important tool to control the money supply.