Question

ASSIGNMENT# 3 ECOM Based on the information in Table 17.2, it is clear that: A. Country A has a comparative advantage in wheat. B. Country B has an absolute advantage in both goods. C. Country B has a comparative advantage in both goods. D. Country A has an absolute advantage in com. S. Based on the information in Table 17.2, the output of corn and wheat would be greatest A. Both countries prohibited trade. B. Country B specialized in producing corn and Country A specialized in producing wheat. C. Country A specialized in producing corn, and Country B specialized in producing wheat. D. Country B produced both goods and exported them to Country A. Suppose a bank has $50,000 in transactions accounts and a minimum reserve requirement of 10 percent. Then required reserves are: A. $5,000 B. $50,000 C. $55,000 D. S500,000 Patricia's nominal annual income in 2009 was $60,000. If the rate of inflation is constant at 10 percent, in order to keep Patricia's real income constant, her nominal income in the year 2010 should be: A. $60,000 B. SS4,000. C. 566,000. D. $70,000. If excess reserves are $50,000, demand deposits are $1,000,000, and the minimum reserve requirement is 5 percent, then total reserves are: A. S1,000,000 B. $100.000 C. $50,000 D. $2,500 4. The multiplier is equal to: A. 1 - MPC B.MPS + MPC C. 1 + MPS. D. 1 + MPC

Answer 1

As per the Chegg guidelines, we are allowed to solve the first question in case of multiple question being asked.

Since Question 4 and 5 are related to a table not attached in the question, I am solving Question 6 and 7

Question 6

Required Reserves= Amount Deposited*Reserve Rate= 50000*0.10=5000 dollars

hence the correct answer is option A. The other options are not correct, because the value which came after calculation is different from the value given in those options, so options B,C and D are incorrect.

Question 7

We know that,

Nominal Income= Real Income*Inflation Rate

Therefore, in order to keep Real Income same i.e., 60000, nominal income should be, given inflation rate = 10 %

Nominal Income= 60000*1.10= 66000 dollars

Hence, the correct answer will be option C.The other options are not correct, because the value which came after calculation is different from the value given in those options, so options A,B and D are incorrect.