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Macroeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (7th Edition)
7th Edition
ISBN: 9780134833415
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Question
Chapter 19.A, Problem 1RDE
Subpart (a):
To determine
Movement of gold price when countries are reestablishing the gold standard.
Subpart (b):
To determine
Movement of gold price when countries are reestablishing the gold standard.
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In Belarus, the government doesn’t allow trading of its ruble outside a narrow price range, which greatly overvalues the ruble – there is a price floor on the ruble compared to euros or dollars. Because of the floor, currency trading has dried up – who would want to sell foreign currencies for grossly overpriced Belarusian rubles? A friend of one of my students has a web site designed to overcome rigidities in this market, a sort of Craigslist for currency. People specify amounts they are willing to buy or sell, agree to trade at some price and arrange a meeting place. When they meet, the trade nominally occurs at the official price floor, making the transaction nominally legal; but the person selling rubles makes extra payments to the buyer to lower the price sufficiently so that the trade actually takes place at the equilibrium price. This is one more way in which technology helps markets circumvent imperfections and rigidities.
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Define soft currency
The table to the right shows hypothetical values, in billions of dollars.
Use the table to calculate the M1 and M2 money supply for each year. (Enter your responses rounded to
the nearest dollar.)
Total M1
Total M2
2009
1924
10240
M1
Growth rate
M2
Growth rate
2010
1906
10565
2010
Calculate the growth rates of the M1 and M2 money supply from the previous year. (Enter your
responses rounded to one decimal place. Use a minus sign to enter negative numbers.)
2011
1919
11055
2011
2012
1936
11716
2012
27
A. Currency
B. Money market
mutual fund shares
C. Saving account
deposits
D. Money market
deposit accounts
E. Demand and
checkable deposits
F. Small-denomination
time deposits
G. Traveler's checks
H. 3-month Treasury
bills
2009
920
676
5,600
1,200
1,000
2010
930
677
840
5,880
2011
2012
936
941
675 684
6,068 6,205
1,231 1,260 1,315
972 980 993
871
1,133 1,576
4
3
2
1,996 2,384 2,446 2,512
Chapter 19 Solutions
Macroeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (7th Edition)
Ch. 19.A - Prob. 1RQCh. 19.A - Prob. 2RQCh. 19.A - Prob. 3RQCh. 19.A - Prob. 4RQCh. 19.A - Prob. 5RQCh. 19.A - Prob. 6RQCh. 19.A - Prob. 7PACh. 19.A - Prob. 8PACh. 19.A - Prob. 9PACh. 19.A - Prob. 10PA
Ch. 19.A - Prob. 11PACh. 19.A - Prob. 12PACh. 19.A - Prob. 13PACh. 19.A - Prob. 14PACh. 19.A - Prob. 15PACh. 19.A - Prob. 1RDECh. 19 - Prob. 19.1.1RQCh. 19 - Prob. 19.1.2RQCh. 19 - Prob. 19.1.3PACh. 19 - Prob. 19.1.4PACh. 19 - Prob. 19.1.5PACh. 19 - Prob. 19.1.6PACh. 19 - Prob. 19.2.1RQCh. 19 - Prob. 19.2.2RQCh. 19 - Prob. 19.2.3RQCh. 19 - Prob. 19.2.4RQCh. 19 - Prob. 19.2.5PACh. 19 - Prob. 19.2.6PACh. 19 - Prob. 19.2.7PACh. 19 - Prob. 19.2.8PACh. 19 - Prob. 19.2.9PACh. 19 - Prob. 19.2.10PACh. 19 - Prob. 19.2.11PACh. 19 - Prob. 19.2.12PACh. 19 - Prob. 19.2.13PACh. 19 - Prob. 19.2.14PACh. 19 - Prob. 19.2.15PACh. 19 - Prob. 19.2.16PACh. 19 - Prob. 19.2.17PACh. 19 - Prob. 19.2.18PACh. 19 - Prob. 19.2.19PACh. 19 - Prob. 19.2.20PACh. 19 - Prob. 19.3.1RQCh. 19 - Prob. 19.3.2RQCh. 19 - Prob. 19.3.3PACh. 19 - Prob. 19.3.4PACh. 19 - Prob. 19.3.5PACh. 19 - Prob. 19.2RDE
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