What did you guys think of the test?</p>
Thanks for making this thread! :)</p>
I thought it was alright… this was my first AP Exam too. I wish there was more time given for the Multiple Choice.</p>
Not too many math-calculations required either, which was good.</p>
i thought the multiple choice wasnt bad…the free was easy, except for the last one… if anyone can explain post 48 hoursss!</p>
Does anyone know the answer to the question that dealt with money demanded and nominal ir in the multiple choice?</p>
That was the one with the loanable funds table wasn’t it? Ugh… I remember not studying it because I was pretty sure it wouldn’t be on the test.</p>
<em>cough</em>all of the following is hypothetical, of course<em>cough</em>
a.) Find reserve ratio. Answer was .2! This was because checkable deposits was 10k, and req reserves was 2k. 2k is 20% of 10k, so 20% or .2 was your answer.</p>
b.) Federal Reserve buys 5000USD worth of bonds, find effect on:
(i). Excess Reserves(I had no clue what to do)
(ii). Deposits (I had no clue what to do)</p>
c.) What is maximum change in the money supply? I think it was 25000? I don’t remember…</p>
that’s all I remember :/</p>
b) excess reserves went up 5000 and deposits did not change, i believe.</p>
a and c seem right to me…</p>
Lol nice job bluntly talking about the questions. Hypothetically though, if you put $5000 into a bank then their reserves would increase. No idea about demand deposits, but I thought that they wouldn’t change. A change in money supply (I thought) was Maximum Supply of Money (let’s say 25000 as an arbitrary number) - original deposit (lets say $5000) so the change was 20000. Right?</p>
Excess reserves went up $4000. Since the RR was .2, 20% of the $5000 had to be put in the bank, so its 80% of 5000 or $4000 in excess reserves.</p>
Its $20,000 in loanable funds PLUS the $5000 that were exchanged for the bonds. Hypothetically of course. So it would be $25,000/</p>
I have a few questions on the MC</p>
- was the increase in spending for the family that made 4000 more with a mpc of .75 3000?
- was the frictional employment one the answer about the girl coming out of college and having multiple offers?
- what was the one about money demanded and nominal ir?
- what was one of the last questions about the proportion of CPI change after a nominal gdp change from 2400 to 2600?</p>
Crap you’re right…</p>
( these are all hypothetical, btw)</p>
kellian we cannot discuss questions from the AP, sorry.</p>
1.) Hypothetically, you would be correct.
2.)Yes, The only other option that kind of made sense was the guy that had a part time job who was seeking a full time job. But he was already employed, so he couldn’t have been counted in the unemployment.
3.) I don’t remember… If Demand of money shifts inward/decreases, interest rate also decreases. Money Market graph…
4.)Don’t remember this question either :(</p>
As the demand for money increase, the nominal interest rate increases. Its a supply and demand curve with the y-axis being the nominal interest rate and the supply curve of money being vertical.</p>
Also, nominal GDP and CPI change at equivalent amounts. If real GDP is the same and nominal GDP changes, that means there is inflation or deflation. CPI measures inflation and deflation.</p>
Apparently, again hypothetically speaking, my teacher said if the third question happened to be on calculating the required reserve ratio, the answer would be .10, but I put .20… help???</p>
So I asked my teacher yesterday what he believed would be on the FRQ because he was pretty close on Government and he responded with “Phillip’s Curve, banking, AD/AS”. I won’t say if he was right because of the 48 hour rule but… I was happy.</p>
I don’t know why you are panicking… the correct answer is .2 or 20%…</p>