Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

$1.00 $4.00 $2.00 $3.00 32. From 1995 to 2001, the U.S. public debt relative to

ID: 1207202 • Letter: #

Question

$1.00

$4.00

$2.00

$3.00

32. From 1995 to 2001, the U.S. public debt relative to GDP:

Was roughly constant, but has increased since

Decreased, and increased since then

Increased steadily and continued to increase since then

Increased, and fell since then

33. Which definition(s) of the money supply include(s) only items which are directly and immediately usable as a medium of exchange?

M1 and M2

Neither M1 nor M2

M2

M1

The dollar price of pounds will increase to $5 equals 1 pound

The pound price of dollars will rise to 1/4 pound equals $1

The pound price of dollars will fall to 1/5 pound equals $1

A dollar shortage of MN will result in Britain

35. The current monetary system for conducting international trade is usually described as a system of:

Fixed exchange rates

Managed floating exchange rates

A managed gold standard

Freely floating exchange rates

36. Money supply M1 does not include the currency held by:

State and local governments

Business firms

Commercial banks

Households in their wallets or purses

37. The most important among the Federal Reserve district banks in conducting monetary policy is the:

Chicago bank

San Francisco bank

Boston bank

New York bank

38. A single commercial bank must meet a 25 percent reserve requirement. If it initially has no excess reserves and then $2,000 in cash is deposited in the bank, it can increase its loans by a maximum of:

$2,000

$1,500

$1,750

$1,250

39. A commercial bank's checkable-deposit liabilities can be estimated by:

Dividing its required reserves by the reserve ratio

Multiplying its required reserves by its excess reserves

Multiplying its required reserves by the reserve ratio

Dividing its required reserves by its excess reserves

40. The total amount of debt owed by the Federal government is represented by the total value of the outstanding:

Federal Reserve notes

U.S. government securities

Stocks and bonds

Bank loans and deposits

Explanation / Answer

31.

Correct Answer:

$3

Explanation:

At the price rate of $3, quantity demanded by the import country is equal to the quantity supplied by the export country and that is 100. Thus, equilibrium is established between demand and supply at $3 price.

Pl. repost other unanswered questions for their proper answers!