(04.04 MC) Suppose an individual deposits $7,000 in a bank that has a reserve requirement of 20%. Assuming this is the only deposit in the bank, what is the liability and the excess reserve held by the bank?

(02.01 MC) Which of the following statements explains the difference between final goods and intermediate goods with regards to the GDP?

(04.06 MC) Suppose an economy has a money supply of $1,000 billion and a reserve requirement is 20%. What will be the amount of money supply in the economy if the central bank decides to buy $5 billion worth of government bonds in an open market operation, and banks hold no excess reserves?

(06.01–06.06 HC) Country X and Country Y are trading partners each with a current account balance of zero. Country X’s currency is the dollar, and Country Y’s currency is the peso. If interest rates in Country X increase, will the immediate consequence be a current account deficit, surplus, or no change for Country X? Explain. Draw a graph of the foreign exchange market for the dollar of Country X. Illustrate the effect of the increase in interest rates in Country X on the value of its dollar compared to the peso of Country Y. Now if Country Y enters a severe recession, what will be the impact on demand for the dollar of Country X? Explain. Based on part (c), what will be the effect on the value of the dollar of Country X compared to the peso of Country Y?

(02.01 LC) Which of the following is true regarding the circular flow model used to explain the GDP?

(03.08 MC) Which of the following fiscal policy actions is taken by the government to eliminate inflationary gap in the economy?

(02.05 HC)This question refers to the following excerpt.”KNOW YE … That for the further Well- being and good Government of the said Province, and Territories; … I the said William Penn do declare, grant and confirm, unto all the Freemen, Planters and Adventurers, and other Inhabitants of this Province and Territories, these following Liberties, Franchises and Privileges …Because no People can be truly happy, though under the greatest enjoyment of civil liberties, if abridged of the freedom of their consciences, as to their religious profession and worship: And Almighty God being the only Lord of Conscience, Father of Lights and Spirits; and the Author as well as object of all divine knowledge, faith and worship, who only doth enlighten the Minds, and persuade and convince the understandings of people, I do hereby grant and declare, that no person or persons, inhabiting in this Province or Territories, who shall confess and acknowledge One almighty God, the Creator, Upholder and Ruler of the World; and profess him or themselves obliged to live quietly under the Civil Government, shall be in any case molested or prejudiced, in his or their person or estate, because of his or their conscientious persuasion or practice, nor be compelled to frequent or maintain any religious worship, place or ministry, contrary to his or their mind, or to do or suffer any other act or thing, contrary to their religious persuasion.And that all persons who also profess to believe in Jesus Christ, the Savior of the World, shall be capable (notwithstanding their other persuasions and practices in point of conscience and religion) to serve this Government in any capacity, both legislatively and executively.” Source: William Penn, from Pennsylvania Charter of Privileges and Liberties (1701) What was the primary reason that William Penn granted religious freedom in his colony?

(06.06 MC) Assume that the real interest rate falls in Country Y. Which of the following will occur?

(05.07 MC) The government of country B has relaxed immigration policies. Which of the following is likely to be a consequence of this policy?

(02.01 LC) Which of the following is true about nominal GDP?