24. Refer to Figure 15.4. An increase in the money supply from Ms1 to Ms3 will cause

21. The use of money and credit controls to change the macroeconomy is

7. Government taxes are an example of a policy lever.

In your own words, explain the significance of the Golden Ratio to you.  A 1-2 sentence summary is fine.

16. Assume an original balance sheet: Refer to Table 14.1. If the Fed changes the required reserve ratio to 10 percent, ceteris paribus, the lending capacity of the system would eventually

2. Suppose the MPC in the economy in Figure 10.2 equals 0.5 and the shift from AD0 to AD1 was caused by a decrease in consumption of $12 billion. What will the total decrease in aggregate demand be (for example, AD0 to AD2) as a result of the initial $12 billion decrease?

10. A shift from AD1 to AD2 in Figure 11.2 will

18. The minimum amount of reserves a bank is required to hold is

3: Debt (28 points) Answer the following debt questions in Excel and submit into Canvas. Purple Corporation bonds mature in 15 years, have an 8.5% annual coupon rate (paid semi-annually), and a $1,000 par value.  The bonds are callable in 6 years at a call price of $1,050. i. Assuming the current price of this bond is $1,142, what is the (a) yield to maturity, (b) yield to call, and (c) current yield? ii. What would you be willing to pay for this bond if you require a 7.6% rate of return on similar investments? iii. Would you purchase the bond for $1,142 if your required rate of return was 7.6%? Explain. Complete in Excel and upload at the end of the exam.

4. An initial (autonomous) decrease in aggregate demand will likely be