Advanced Technical Writing

A ___________________________________ can lead to disruptive economic patterns and heavy strains on a country's banking and ﬁnancial system. sustained pattern of large budget deﬁcits    _______________________________ can set the stage for international ﬁnancial investors ﬁrst to send their funds to a country and cause an appreciation of its exchange rate and then to pull their funds out and cause a depreciation of the exchange rate and a ﬁnancial crisis as well. trade balance    The Central Bank has raised its reserve requirements from 10% to 12%. If Southern Bank ﬁnds that it is not holding enough in reserves to meet the higher requirements, then it will likely: borrow for the short term from the central bank.    A central bank must be concerned about whether a large and unexpected ___________________________ will drive most of the country's existing banks into bankruptcy. exchange rate depreciation    Central bank policy requires all banks to hold 10% of deposits as reserves. Paciﬁc Bank policy prevents it from holding excess reserves. Suppose banks cannot trade any of the bonds they already have. If the central bank decides to lower the reserve requirement to 9%, which of the following will result? increase of $1 million in Paciﬁc's loan assets    Central Bank policy requires Northern Bank to hold 10% of its deposits as reserves. Northern Bank policy prevents it from holding excess reserves. If the central bank purchases $30 million in bonds from Northern Bank what will be the result? Northern's loan assets increase by $30 million    The central bank requires Southern to hold 10% of deposits as reserves. Southern Bank's policy prohibits it from holding excess reserves. If the central bank sells $25 million in bonds to Southern Bank which of the following will result? the money supply in the economy decreases    A central bank that desires to reduce the quantity of money in the economy can: raise the reserve requirement.    A central bank that wants to increase the quantity of money in the economy will: buy bonds in open market operations.    A central bank that wants to increase the quantity of money in the economy will: buy bonds in open market operations.    The central bank uses a ____________________ monetary policy to oﬀset business related economic contractions and expansions? countercyclical    The change in inventories, a component of aggregate supply, comprises roughly __________ of GDP 0.5%    Changes in the price level of the diﬀerent components of aggregate demand are reﬂected in the AD/AS macroeconomic model by a ________________________. downward sloping AD curve    The chart below gives the data necessary to make a Keynesian cross diagram. Assume that the tax rate is 0.4 of national income, the MPC out of after-tax income is 0.9, investment is 58, government spending is 60, exports are 40, and imports are 0.1 of after-tax income. -374 - Y=400    Consumption in the United States is about ____________ of GDP, and it moves relatively little over time. 68%   

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