Question 1

Which of the following is included in M2, but not in M1?

Accepted Answer

A)  currency (outside the Bank of Canada and the vaults of depository institutions) 
B)  travelers' cheques 
C)  demand deposits 
D)  personal savings deposits 
E)  nonpersonal notice deposits 
A)  currency (outside the Bank of Canada and the vaults of depository institutions) 
B)  travelers' cheques 
C)  demand deposits 
D)  personal savings deposits 
E)  nonpersonal notice deposits

Question 2

Which of the following approximately describes the relationship between the nominal and real interest rate?

Accepted Answer

A)  r $\approx $ R - i 
B)  R $\approx $ r - i 
C)  R $\approx $ r + $ \frac{i}{2} $ 
D)  r $\approx $ R + i 
E)  r - R $\approx $ i 
A)  r $\approx $ R - i 
B)  R $\approx $ r - i 
C)  R $\approx $ r + $ \frac{i}{2} $ 
D)  r $\approx $ R + i 
E)  r - R $\approx $ i

Question 3

Central banks in the world are increasingly experimenting with unconventional monetary policies. Describe two types of unconventional monetary policies, and discuss why these policies may or may not work.

Accepted Answer

Two types of unconventional monetary pol

Which of the following is included in M2, but not in M1?

Which of the following approximately describes the relationship between the nominal and real interest rate?

Central banks in the world are increasingly experimenting with unconventional monetary policies. Describe two types of unconventional monetary policies, and discuss why these policies may or may not work.

Introduction

Measurement

Business Cycle Measurement

Consumer and Firm Behaviour: The Work–Leisure Decision and Profit Maximization

A Closed-Economy One-Period Macroeconomic Model

Search and Unemployment

Economic Growth: Malthus and Solow

Income Disparity among Countries and Endogenous Growth

A Two-Period Model: The Consumption–Savings Decision and Credit Markets

Credit Market Imperfections: Credit Frictions, Financial Crises, and Social Security

A Real Intertemporal Model with Investment

Business Cycle Models with Flexible Prices and Wages

New Keynesian Economics: Sticky Prices

Inflation: Phillips Curves and Neo-Fisherism

International Trade in Goods and Assets

Money in the Open Economy

Money, Inflation, and Banking: A Deeper Look

Filters

Exam 12: A Monetary Intertemporal Model: Money, Banking, Prices, and Monetary Policy

Which of the following is included in M2, but not in M1?

Which of the following approximately describes the relationship between the nominal and real interest rate?

Central banks in the world are increasingly experimenting with unconventional monetary policies. Describe two types of unconventional monetary policies, and discuss why these policies may or may not work.

Introduction

Measurement

Business Cycle Measurement

Consumer and Firm Behaviour: The Work–Leisure Decision and Profit Maximization

A Closed-Economy One-Period Macroeconomic Model

Search and Unemployment

Economic Growth: Malthus and Solow

Income Disparity among Countries and Endogenous Growth

A Two-Period Model: The Consumption–Savings Decision and Credit Markets

Credit Market Imperfections: Credit Frictions, Financial Crises, and Social Security

A Real Intertemporal Model with Investment

Business Cycle Models with Flexible Prices and Wages

New Keynesian Economics: Sticky Prices

Inflation: Phillips Curves and Neo-Fisherism

International Trade in Goods and Assets

Money in the Open Economy

Money, Inflation, and Banking: A Deeper Look

Filters