Across
- 1. john’s income is $3600 and his disposable personal income is $2088. That means the tax rate is ------- percent.
- 2. when the required reserve ratio is 8%, an increase in excess reserves of 62 million dollars is expected to increase money supply by a maximum of ------ million dollars.
- 3. when the government of Economia increases spending by 231 million dollars and increase taxes by 231 million dollars, real GDP is expected to increase by ------- million dollars.
- 6. given that the required reserve ratio is 12%, if a bank has deposits of $4,818,075 and hold 1.4 million dollars in the bank, how much excess reserves to they have?
- 7. when households spend 28 million dollars, real GDP increases by 70 million dollars meaning the MPC is -------
- 9. the country has a recessionary gap of 493 billion dollars. The central bank’s sells bonds which changes real GDP by 276 billion dollars. If MPC is 0.875, how many billions of dollars should the government spend to get the country back to long run equilibrium?
Down
- 1. given that MPS is 0.23, how much of an extra $5900 will a person spend?
- 4. given that the required reserve ratio is 20 percent. If Mary deposits $4570 into the bank, the money supply in expected to increase by a maximum of ---------
- 5. given that the required reserve ratio is 12%, if a bank has deposits of $4,818,075, how much are they required to have in the bank?
- 8. real GDP increases by 84 when the government increases spending by 24 million dollars. What is the spending multiplier?