Lernmaterialien für Macro Mock an der FHNW - Fachhochschule Nordwestschweiz

When economists measure economic growth, they often use:

GDP does NOT exclude:
a) damage to the environment.
b) the value of housework.
c) the value of owner-occupied housing.
d) the value of leisure.

In conducting monetary policy Fed fund rates are a key interest rate. But what are Fed fund rates?
a) 1 month USD Libor
b) rate at which banks lend to each other reserves at the Fed
c) the rate at which the Fed lends money to banks against posting of collateral

What’s the essence of deposit insurance?
a) Reduce the risk of bank runs.
b) Increase competition in the insurance market by allowing banks to sell insurance
policies.
c) Make bank vaults safe such that money cannot be stolen in a bank robbery.

We learnt that the Fed has a dual mandate - ensuring price stability and full employment.
Which concept describes the tradeo↵ between unemployment and inflation?
a) The Taylor rule.
b) The Phillips curve.
c) Okun’s law.

An open economy:
a) does not impose taxes on its citizens.
b) allows free practice of speech and religion.
c) does not regulate its industries.
d) trades goods and services with other countries.

(Ma) (Mi) How might crypto currencies such as Bitcoin undermine the ability of central banks
to conduct monetary policy?

(Ma) (Mi) How does the Bitcoin mining activity react to changes in electricity prices?

(Ma) (Mi) How does an aging population a↵ect the level of interest rates?

(Ma) (Mi) How much savings do I need to retire one year early?

Which of these scenarios sound like deflation?
a) Gasoline prices are up 10%, food prices are down 20%, and the prices of most services are up 12%.
b) Gas prices have doubled, food prices are up 50%, and most services seem to be up 5% or 10%.
c) Gas prices haven‘t changed, food prices are way down, and services have gotten cheaper, too

Fiscal policy attempts to a↵ect the level of overall spending by making changes in: