Tutorial Time and Day: _______________________________________________________________________________________________
Student Name: ________________________________________________________________________________________________________
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This assignment covers the following topics:
·         Monetary System (Chapter 29)
·         Inflation: Its causes and costs (Chapter 30)
·         Aggregate demand and supply (Chapter 33)
READ THE FOLLOWING FIRST (Very Important)
·         This assignment contributes to 20% of the overall marks for the course.
·         Only a single attempt of submission is permitted (please ensure to attach the final version of the assignment)
 
·         Use this Word template only for your submission (i.e., write down your answers in the space provided in each question and submit) – any other form of the file is NOT accepted for online submission (Failing to do so will automatically mean zero mark for this task).
·         If you do not have a word processor installed in your home computer, follow the link below and in “APPS” you can use a Microsoft word processor;  http://www1.rmit.edu.au/students/mydesktop
 
·         The recommended browsers for submission are Chrome, Firefox or Explorer (some have suggested that Safari might not work well).
·         The font size has to be at least 12.
·         Explain your answers, but be succinct.
·         Label each axis and explain the diagram that you use carefully.
·         Show all of your working steps in order to get partial credits.
·         Please ensure to attach the final version of the assignment.
·         After the due date any late submission will be marked as ‘late’. A penalty of 10% of the allocated marks (i.e., 2 marks) per day will apply for late submissions.
·         A failure of your home computer (or any kind of the IT problem) cannot be a reason for the late submission (all requests for an extension of this nature will be rejected immediately).
·         Make sure you have included your student ID and name on the front page of the assignment
·         Working with other fellow students is strongly encouraged. However, you cannot just copy your friend’s answers. If we find out this, you will be harshly punished for the academic plagiarism. See　‘students responsibilities’ at RMIT’s policy on this:
·         http://www1.rmit.edu.au/browse;ID=sg4yfqzod48g1
 

 
 
Short Answer Questions:
 
1.      Watch the 2009 BBC news video at: http://news.bbc.co.uk/2/hi/business/7924506.stm.
Answer the following questions, providing explanations:
 
a.       What is ‘quantitative easing’? (Hint: see P.911 of textbook). (1 mark)
 
 
 
 
 
 
 
b.       Why did Britain, the USA, Japan, the European Monetary Union and others embark on it in early 2009 but not Australia? (2 marks)
 
 
 
 
 
 
 
 
c.       What is the one great fear of quantitative easing? You must use the quantity equation to support your argument. (3 marks)
 
 
 
 代写 MACRO1 (ECON1010) Assignment 2
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
2.      The World’s Best Bank (WBB) is the only bank in the country and its T-account is:
-----------------------------------------------------------------------------------------------------------------------
Assets                (in $ million)                                   Liabilities  (in $ million)      
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Reserves                      300                    Deposits                   600
Loans                                     200
Cash held in overseas banks         100                    Debt                                     200
Securities                 300                    Capital (owner’s equity)      100
 
a.       What is WBB’s reserve ratio? (1 mark)
 
 
 
 
b.       What is the implied money multiplier? (1 mark)
 
 
 
 
c.       What is WBB’s leverage ratio? (1 mark)
 
 
 
 
d.       Suppose a foreign depositor withdraws $100 from his WBB account and transfers the funds to his overseas account. What happens to WBB’s reserve ratio? What happens to the money supply? (2 marks)
 
 
 
 
 
e.       Going back to the original T-account (i.e. the withdrawal of part d. did NOT take place), Suppose that due to the mortgage crisis some people default on their loans, and their value thus decreases by 50. What happens to the leverage ratio (assuming the bank makes no changes in reserves)? (2 marks)
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
3.      Based on what you have studied so far in macro1, discuss and describe some aspects of macroeconomics that can be useful in your future (yes, it can be anything we have discussed in this course). Your discussion should be more than half a page in length (please do not copy and paste the sentences from the course guide!) (7 marks)
 
(Answer here)

代写 MACRO1 (ECON1010) Assignment 2