Need Help in Macro Economics

[Tiger Bass 5,000+ posts]

This question is driving me ****ing crazy...

If the money supply is 1000 and the cash balance ratio is 0.2, then the equilibrium GDP is: 2000

I have no idea in hell how it gets this answer. I would assume that since AD=GDP and AD=Stock of Money/Cash Balance Ratio, you would just divide 1000 by 0.2. However, this gives you 5000 and is apparently wrong.

Click to read more...

 

[CaliforniabOY5 10+ year member]

Sorry no 1 was able to help. . . . my friend took this class last semester and he worked his *** off for a C. Told me it was ****en hard! Best Wishes!

 

[Flipx99 5,000+ posts]

I don't think the term is called cash balance ratio?

Do you mean the amount that banks have to retain as a cash balance on the loans they grant?

 

[Tiger Bass 5,000+ posts]

Im a little confused by the term cash balance ratio myself. I tried looking it up and I couldn't find jack shit. None the less, this IS the term that my professor uses and in the way that I explained.

The amount that banks have to retain in the reserve to deposit ratio.

And yes, Im working my *** off also and Im probably only going to get a C also. This is by far the hardest class I've taken.

 

[iceteebone 5,000+ posts]

took macro economics and got an A but don't remember a thing from the class.

 

[Flipx99 5,000+ posts]

Im a little confused by the term cash balance ratio myself. I tried looking it up and I couldn't find jack shit. None the less, this IS the term that my professor uses and in the way that I explained.
The amount that banks have to retain in the reserve to deposit ratio.

And yes, Im working my *** off also and Im probably only going to get a C also. This is by far the hardest class I've taken.

I stduied economics and never heard of the cash balance ratio. I am pretty sure they are the same. These questions make me feel bad for getting A and can't remember basic things 3 or 4 years later.

I see how reserve ratio affects the money supply but that would assume the increases in money supply would be tied to a transaction (as GDP is the sum of goods and services sold during a year)

I would ask for additional clarification.

 

[CaliforniabOY5 10+ year member]

took macro economics and got an A but don't remember a thing from the class.

//content.invisioncic.com/y282845/emoticons/bsflag.gif.21f42eccd34b7d1eb1608fb1b59b69c3.gif maybe in HS but college level i question, show us a transcript.

 

[Flipx99 5,000+ posts]

I can...

 

[iceteebone 5,000+ posts]

//content.invisioncic.com/y282845/emoticons/bsflag.gif.21f42eccd34b7d1eb1608fb1b59b69c3.gif maybe in HS but college level i question, show us a transcript.

i'll post an unofficial transcript. it was a community college course

 

[Tiger Bass 5,000+ posts]

Well, my exam is in 50 minutes. Hopefully I'll be able to ask the professor a couple questions before we start.

 

[iceteebone 5,000+ posts]

eh it was a B but i can post it anyways

 

[Flipx99 5,000+ posts]

Well, my exam is in 50 minutes. Hopefully I'll be able to ask the professor a couple questions before we start.

Is that the question or what you got in your notes?

 

[iceteebone 5,000+ posts]

as you can tell, i'm a straight B student //content.invisioncic.com/y282845/emoticons/laugh.gif.48439b2acf2cfca21620f01e7f77d1e4.gif

 

[Flipx99 5,000+ posts]

That does nothing to further TigerBass's cause

 

[iceteebone 5,000+ posts]

That does nothing to further TigerBass's cause

i know but californiaboy said i was bullshitting.