CUNY ECON 112 – The real after tax rate is 3%, the inflation

CUNY ECON 112 – The real after tax rate is 3%, the inflation

Subject: Economics    / General Economics   
Question

QUESTION 37

The real after tax rate is 3%, the inflation rate is 4% and the tax rate is 35%. What is before tax nominal rate?

3%

4%

5%

None of the above

QUESTION 34

Bank has $253 million dollars in loans. What is bank’s deposits if reserve requirement is 8% and bank keeps $5 million excess reserves?

$258 million

$280 million

$292 million

None of the above

QUESTION 24

Suppose the banking system currently has $275 million in reserves, the reserve requirement is 8%, and excess reserves are $43 billion. What are the level of Loans?

$2,584 million

$2,625 million

$2,900 million

None of the above

Total reserves in the banking system is $120 billion none of which are excess. People hold only deposits and no currency, and the reserve requirement is 8%. If the Fed reduces the reserve requirement to 6% and at the same time sells $35 billion worth of bonds, then by how much does the money supply change?

Decreases by 13%

Decreases by 27%

Increases by 13%

Increases by 27%

QUESTION 32

Bank has $27 million in excess reserves, $326 million in deposits, and $253 million dollars in loans. What is reserve requirement for the bank?

8%

11%

14%

None of the above

QUESTION 36

Adult non- institutionalized population in Greatland is 110 million, the labor force is 45 million, and the number of people employed is 40 million. According to these numbers, the Greatland’s unemployment rate is

11%

40%

59%

None of the above

QUESTION 40

Greatland is a closed economy. Greatland’s GDP is $12 million, private consumption is $5 million, government’s spending is $2 million, and taxes is $1 million. What is Greatland’s private saving?

-$1 million

$1 million

$5 million

$6 million