Macroeconomics Homework Help

Question 4 Match each description with the correct key term.

Rental costs for office space have been going up at 8.9% per year compounded annually for the past 9 years. If office space rent is now $20 per square foot per month, what were the rental rates 9 years ago?

If you pay $8,450 for a 20-year zero coupon bond with a face value of $48,000, what is your annual compound rate of return?

Bob makes his first $600 deposit into an IRA earning 7.5% compounded annually on his 24th birthday and his last$600 deposit on his 36th birthday (13 equal deposits in all). With no additional deposits, the money in the IRA continues to earn 7.5% interest compounded annually until Bob retires on his 65th birthday. How much is in the IRA when Bob retires?

An investor purchases 403 shares at $39.32 a share, holds the stock for 288 days, and then sells the stock for$45.46 a share. Assume a 360-day year.

A radio commercial for a loan company states: "You only pay 32¢ a day for each $500 borrowed." If you borrow$1,380 for 241 days, what amount will you repay, and what annual interest rate is the company actually charging?(Assume a 360-day year.)

2. Nasser's preferences over juice (i) and sandwiches (s) are given by U(j,s) = √j + √s Suppose that the price of a bottle of juice is 3 KD and the price of a sandwich is 1.5 KD, and Nasser can spend a combined total of 36 KD each day on these goods. a. Express Nasser's consumer choice problem. b. Find the marginal rate of substitution of sandwiches for juice. c. Find Nasser's optimal consumption basket. d. Given that Nasser maximizes his utility, explain how Nasser's marginal utility per KD spent on juice compare to his marginal utility per KD spent on sandwiches? (Make sure to calculate these values) e. If Nasser decides to buy 6 bottles of juice and 12 sandwiches, show how his marginal utility per KD spent on juice compare to his marginal utility per KD spent on sandwiches? f. Draw a rough sketch of Nasser's indifference curve and budget line. Label his optimal basket and place juice on the vertical avic and sandwiches on the horizontal avic

You are an economic adviser using the Fed model to analyze the economy. As a result of a fall in consumer spending, you'd predict that the real interest rate will ________real GDP will ______ will be ________

1. The U.S. banking system operates under a to keep a fraction of their customers' deposits as which means banks are required If you add all coin and currency in people's hands plus the funds available in checking accounts, you get a measure of the 3.______limit the amount of new check book money that can be created when banks lend their excess reserves. When the Federal Reserve Bank raises the reserve requirement, the money supply will most likely______ When the Federal Reserve lowers the reserve requirement, the money supply will most likely

JUse that the Phillips curve is given by T₁ = π₁ + (m+z) – aut, πt where is the inflation rate, is the expected inflation rate, m is the markup of prices over wages, z is a catch-all variable, and ut of wage flexibility - the higher is a, the greater is the response of the wage to a change in the the unemployment rate. We can think of a as a measure unemployment rate, aut. 1. Suppose m = = 0.03 and z = 0.003. What is the natural rate of unemployment if a = 1? If a = 2? What is the relation between a and the natural rate of unemployment? Explain in words.