Macroeconomics Questions

Indicate which component of GDP will be affected by each of the following transactions involving the Ford Motor Company.a. You purchase a new Ford Escape Hybrid from a Ford dealer. b. You purchase a 2013​ (preowned) Ford Escape Hybrid from a friend. c. Ford purchases door handles for the Escape from an auto parts manufacturer in Indiana. d. Ford produces​ 1,000 Escapes in a factory in Missouri and ships them to a car dealer in​ Shanghai, China. e. Ford purchases new machine tools to use in its Missouri Escape factory. f. The state of Missouri builds a new highway to help improve access to the Ford Escape plant.

Which of the following is not an example of​ "external funds" in corporate​ financing?

The sum of the marginal propensity to consume (MPC​) and the marginal propensity to save (MPS​) equals

To increase the money​ supply, the FOMC directs the trading​ desk, located at the Federal Reserve Bank of New​ York, to

By raising the discount​ rate, the Fed leads banks to make​ _________ loans to households and​ firms, which will​ _________ checking account deposits and the money supply

Whenever banks gain reserves and make new​ loans, the money supply​ ___________; and whenever banks lose​ reserves, and reduce their​ loans, the money supply​ __________.

When the Federal Reserve increases the required reserve ratioas a part of a contractionary monetary​ policy, there​ is:

Suppose you withdraw​ $1,000 from a money market mutual fund and deposit the funds in your bank checking account.How will this action affect M1 and​ M2?

Suppose you decide to withdraw​ $100 in cash from your checking account. Which one of the following choices accurately shows the effect of this transaction on your​ bank's balance sheet.

When the Federal Reserve decreases the required reserve ratio ,

Suppose the reserve requirement is 5​%.What is the effect on total checkable deposits in the economy if bank reserves increase by ​$60 billion?

Which of the following would cause a decrease in aggregate​ demand?

Increase in firms' expectations of their future profitability and investment spending will make the aggregate demand curve shift ...

Suppose Jeff Bezos deposits​ $20 million in cash into his checking account at Wells Fargo Bank. If the reserve requirement is​ 10% and no banks hold excess​ reserves, what will be the total change in money​ supply?

Give the three reasons the aggregate demand curve slopes downward.The U.S. aggregate demand curve slopes downward due to all of the following reasons except the

Compared to the U.S. aggregate demand​ curve, the reason that the demand curve for an individual​ product, such as​ bananas, slopes downward is

Which of the following events would cause an increase in aggregate demand​?

An increase in the amount of excess reserves that banks keep​ _________ the value of the money multiplier.

"China's Yuan Makes Biggest Leap in Five​ Months," Wall Street Journal​, June​ 1, 2017.Was this good news or bad news for firms such as Apple and Yum Brands​ (owners of KFC and Pizza​ Hut) that have stores or restaurants in​ China? Briefly explain.

China purposely keeps its​ currency, the​ RMB, undervalued, for which of the following​ reasons?