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Please use the balance sheet for ABC Bank to answer the question below. If the b

ID: 1097702 • Letter: P

Question

Please use the balance sheet for ABC Bank to answer the question below.

If the banking system has a required reserve ratio of 10 percent, then the money multiplier is:

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0.1.

0.9.

1.11.

10.0.

Please use the balance sheet for ABC Bank to answer the question below.

If the banking system has a required reserve ratio of 10 percent, ABC Bank would have excess reserves of:

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$20,000.

$40,000.

$60,000.

$140,000.

Based on your completion of the following table, please answer the question below.

The % change in price for Laptops is:

Item

Unit Price Last Year

Unit Price This Year

% Change in Price

Item Weight

Inflation Impact

Shoes

$80

$87

0.30

Laptop

$1500

$1450

0.50

DVD

$16

$19

0.20

8.75%

3.33%

-3.33%

18.75%

Based on your completion of the following table, please answer the question below.

The % change in price for Shoes is:

Item

Unit Price Last Year

Unit Price This Year

% Change in Price

Item Weight

Inflation Impact

Shoes

$80

$87

0.30

Laptop

$1500

$1450

0.50

DVD

$16

$19

0.20

8.75%

3.33%

-3.33%

18.75%

Please use the balance sheet for ABC Bank to answer the question below.   

If ABC Bank has a required reserve ratio of 15 percent, what amount of excess reserves does the bank have to hold?  

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$30,000.

$40,000.

$50,000.

$80,000

Based on the following country data from the Economist, please answer the following question:

Which country is most likely facing deflation?

COUNTRY

GDP Growth Rate

Unemployment Rate

Inflation Rate

The United States

1.5%

7.9%

1.6%

Germany

0.4%

6.8%

2.1%

Japan

0.3%

4.2%

-0.1%

China

7.9%

2.6%

4.1%

Greece

-6.0%

27%

1.5%

Venezuela

5.5%

5.9%

22.2%

Source: The Economist, March, 2013

The United States.

Germany.

Japan.

Greece

Based on your completion of the following table, please answer the question below.

The inflation impact for Shoes is:

Item

Unit Price Last Year

Unit Price This Year

% Change in Price

Item Weight

Inflation Impact

Shoes

$80

$87

0.30

Laptop

$1500

$1450

0.50

DVD

$16

$19

0.20

2.625

3.750

1.667

-1.667

Please answer the question below pertaining to the unemployment data provided in the chart.

What is the number of unemployed in Year 1?

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90 million

94 million

106 million

4 million

The graph depicts 4 Lorenz curves (income distribution) for 4 countries. Based on this graph, please answer the following:

Which economy will have a GINI coefficient of zero?

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A

B

C

D

Based on your completion of the following table, please answer the question below.

The % change in price for DVDs is:

Item

Unit Price Last Year

Unit Price This Year

% Change in Price

Item Weight

Inflation Impact

Shoes

$80

$87

0.30

Laptop

$1500

$1450

0.50

DVD

$16

$19

0.20

8.75%

3.33%

-3.33%

18.75%

The graph depicts 4 Lorenz curves (income distribution) for 4 countries. Based on this graph, please answer the following:

For which economy would the lowest 20 percent of families receive the smallest share of total income?

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A

B

C

D

Based on your completion of the following table, please answer the question below.

The inflation impact for DVDs is:

Item

Unit Price Last Year

Unit Price This Year

% Change in Price

Item Weight

Inflation Impact

Shoes

$80

$87

0.30

Laptop

$1500

$1450

0.50

DVD

$16

$19

0.20

2.625

3.750

1.667

-1.667

The above graph depicts 4 Lorenz curves (income distribution) for 4 countries. Based on this graph, please answer the following:

If the income distribution for the United States is represented by curve C, which curve would most likely represent the income distribution for Sweden? Assume Sweden has a smaller GINI coefficient (more equal income distribution) than the United States but that Sweden

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Explanation / Answer

The image question cannot be solved. The rest of the answers are as follows:

The % change in price for Laptops is -3.33%

The % change in price for Shoes is 8.75%

Negative inflation is deflation. Thus the answer is Japan

The % change in price for DVD’s is 18.75%

The average inflation is 4.7%.