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

You purchase a house for $225,000 with a 20% down payment for a 30 year, 4.8% mortgage.  How much will your monthly payment amount be?

A company has $4,600 in inventory, $3,800 in cash, $1,750 in Accounts Receivable, $2,400 in Accounts Payable, $860 in Payroll Expenses, $64,000 in capital, and $41,400 in Notes Payable.  What is the total Owner’s Equity value of the company?

1: Ratio Analysis, Part A (5 points)   What is the above firm’s Return on Assets for 2019 and 2020?  Please complete in Excel and upload to this question. Complete in Excel and upload at the end of the exam.

A Roman statue sitting atop a column is proportioned such that the ratio of the height of the statue to the height of the column is the Golden Ratio, with the column being taller.  The height of the statue was calculated to be XIII cubits.  What is the height of the column?  Round to the nearest whole number, and give your answer in Roman numerals.