What are the rates of unemployment and labour force cipation of et one: a. The rate of unemployment is 10 percent, and the labour force participation rate is 75 percent. b. The rate of unemployment is 11 percent, and the labour force participation rate is 90 percent. C. The rate of unemployment is 10 percent, and the labour force participation rate is 83 percent. d. The rate of unemployment is 11 percent, and the labour force participation rate is 83 percent.

What are the rates of unemployment and labour force cipation of et one: a. The rate of unemployment is 10 percent, and the labour force participation rate is 75 percent. b. The rate of unemployment is 11 percent, and the labour force participation rate is 90 percent. C. The rate of unemployment is 10 percent, and the labour force participation rate is 83 percent. d. The rate of unemployment is 11 percent, and the labour force participation rate is 83 percent.

Principles of Macroeconomics (MindTap Course List)

7th Edition

ISBN:9781285165912

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter16: The Monetary System

Section: Chapter Questions

Problem 5PA

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Suppose that a bank holds $15m in treasury bonds $10m in reserves $30m of checkable deposits $20m of time deposits $6m of capital How much loan does the bank have if we know it doesn't have any other assets or liabilities Suppose that checkable deposits and reserves pay 0 interest The interest rate on treasuries is 3% The loan pays 7% Time deposits pay 5% How much profit does the bank make? What is the bank's return on assets? 3.2% 2.9% 3.7% 2.6%
Assume that the balance sheet of a bank in your assigned country as below:Assets LiabilitiesReserves $5,000 Deposits $40,000Loans $45,000 Capital $10,000a. If the required reserve ratio is 3 percent, then how much does this bank has excessreserves?b. Suppose a bank purchases $1,500 of government securities using funds from reserves.How much do bank assets change as a result of this transaction? Show the change inthe balance sheet above. How much does Money Supply change due to this transaction?c. Calculate the bank’s leverage ratio. What is the maximum decrease (in %) in the marketvalue of assets before the bank becomes insolvent?
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§Suppose that the T-account for First National Bank is as follows: Assets Liabilities Reserves: 90.000-TL Deposits: 500.000-TL Loans: 410.000-TL § §If the Central Bank requires banks to hold 10% of deposits as reserves, how much in excess reserves does First National Bank now hold? MM=1/rr MM=1/(10/100) MM=10 40000*10=400000TL §Assume that all other banks hold only the required amount of reserves. If First National decides to reduce its reserves to only the required amount, by how much would the economy’s money supply increases?
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