90. Suppose that disposable income is $1,000, consumption is $700, and the mpe i

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90. Suppose that disposable income is $1,000, consumption is $700, and the mpe is 0.6. If disposable income then increases by $100, consumption and savings will equal what? which term describes the products used to create the price ndex? 76 What is the single, most accurate indicator of nation's economic strength andlor standard of living? 91. Which policies would a Keynesian recommend during a period of high unemployment and low inflation? what would most likely occur? what will the impact be on the banking system? money is demanded than supplied? 77. In order to be counted as "employed by the U.S. Bureau of Labor statisties, how many hours per week must one 92. If the Federal Reserve lowers the 93. If the public's desire to hold money as currency increases, 94. What will most likely happen in an economy if more 95. If on receiving a checking deposit of $300, a bank' which term describes a statistical series used to measure changes in price over time? 79. The point at which economic expansion ends and recession or depression begins is referred to as a s0. Which of the following defines "full employment? L. Everybody who wants to work has a job. 11· The lowest possible unemployment rate. IlI. The point at which there is only frictional excess reserves increased by $255, the required reserve ratio must be. %. An increase in the money supply is most likely to have what short-run effects on real interest rates and real output? Use the chart belone to answer questlons &1-85 97. Under which conditions would a restrictive (contractionary) monctary policy be appropriate? 98, Assume that the reserve requirement is 20%. If a bank initially has no excess reserves and $10,000 in cash is deposited in the bank, the maximum amount by which this bank may increase its loans is. 12345678 910 11 12 13 14 15 16 17 S 99 Open market operations refer to what Federal Reserve 100.If the United States used tires as currency, what type of 101.Federal Reserve regulations require me to put down at activities? 81. From year I to year 4, which condition existed? 82. During years 5 and 6, which condition existed? 83. What occurred about half-way through year 11? 84. What began in year 16? 85. What happened for about two years, midway through year money would it be using? least 50% of the purchase price of a stock as a down- payment, what is this 50% called? 102.What do we call decisions made by the Fed with regard to 103. Which function of money implies that it maintains 104. Which factors contribute to the stability of the value of a 105.Approximately how much wealth will be created as a 11? increasing or decreasing the money supply? 86. A landscaper that converts his truck to plow snow in the purchasing power, for the most part, over time? nation's currency? result of a $5,000 deposit if the reserve ratio is 15% and winter is trying to combat which type of unemployment? 87. The idea that some resources are better suited to the production of certain goods or services is known as.. 88. What is the name of the graphical representation of all possible combinations of two products that can be produced when all factors of production are fully employed? people hold 10% of reserves in cash? 106. Who owns the Fed? 89. For consumers, pizza and hamburgers are substitutes. A rise in the price of a pizza causes hamburger and in the quantity of hamburgers. in the price of Delallo Final Exam A

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