<p>could someone explain business inventories?</p>
<p>Ah, I was wrong. They’re right. Buying and selling government securities results in only increasing/decreasing the excess reserves.</p>
<p>Told you :p</p>
<p>…You didn’t tell me anything. I wasn’t referring to you being right.</p>
<p>Actually I was correct and cocksure was wrong b cuz u said to subtract stuff</p>
<p>Went soooo well, I’m so happy!! It was a lot easier than I’d expected, honestly. The PR practice test was way harder than the actual one (or any of the previous released exams, as a matter of fact).</p>
<p>Sounds like an easy 5 then if u studied</p>
<p>Can anyone explain how shifts in the money demand curve occur?</p>
<p>If anyone is still studying, here’s a review guide a classmate of mine made for both micro and macro:</p>
<p>[2</a> documents - Ge.tt](<a href=“http://ge.tt/8PxeMnH]2”>http://ge.tt/8PxeMnH)</p>
<p>Also, how do interest rates affect economic growth?</p>
<p>Can anyone please email me the 2010 released exam?</p>
<p>If anyone took 1990 released exam, how many i can miss on Multiple Choice and get 5?</p>
<p>@cocksure
I think it’s around 8 without the guessing penalty and 10 with the guessing penalty.</p>
<p>Do you happen to know the relationship between interest rates and economic growth?
I know it has something to do with investment but I can’t quite remember.</p>
<p>B^BHollander,</p>
<p>where did you get the curve for 1990?? And, i SHOULD NOT miss more than 8 OUT OF 50 to get 5? Or did you refer to statistical information that gives range of number of MC students missed and their AP scores on the exam?</p>
<p>
Higher interest rates discourages investment. After all, you don’t want high-interest loans since that means you have to pay back a lot more than you borrowed. Less investment = lower AD ⇒ Lower rGDP. The opposite is true for lower interest rates.</p>
<p>@cocksure
The actual numbers are pretty irrelevant as the test is over 20 years old, just aim to get around an 80%. I took it from the statistical information that gives ranges.</p>
<p>But for tomorrow’s AP exam it’s possible to get a ~73% on MC and still get a 5 if you get every FRQ point. [AP</a> Pass - AP Macroeconomics Calculator](<a href=“http://appass.com/calculators/macroeconomics]AP”>AP Macro-economics Test Score Calculator - AP Pass)</p>
<p>^ Thank you so much. But, did you get that information from 1990 Curve?? Wow, i don’t know where you found it</p>
<p>If the FED buys bonds, doesn’t the money go directly to excess reserves?! The question says that if the RRR is .2 then what is the maximum change in loans in the banking system if the FED bought $10 billion worth of bonds… I thought when your dealing with the FED it’s just money multiplier times the dollar amount… instead the answer is $40 million! Please explain…I know how they got 40 but I want to know why they take the RR out of the previous 10 million… is it because the question asks for “loans” specifically… no the change in the money supply…</p>
<p>They are excluding the initial investment of $10 million. It seems as though they are asking how much money is created AS A RESULT OF the $10 million purchase.</p>
<p>If you guys are still confused about when to subtract or not for buying bonds/money multiplier stuff, I suggest looking over the ACDC econ video on youtube for section 4.4, it does a great job of explaining it!</p>