<p>Nah, I thought they had to hold 20% of the original ten million (i.e two million), not out of the money they had expanded the market by (50 mil).</p>
<p>Yep, so I just looked it up and I got that part wrong, good call there. I always forget that it's (1/RR) times (1-RR)(invested), not (invested)(1/RR) minus (RR)(invested)</p>
<p>so am i right?</p>
<p>Yep, that's why I said good call, I made a very dumb error that part, hopefully I get some partial credit on it, but I doubt it.</p>
<p>on #3 for macro, i said no, yes, no, no. rent is counted in the income approach for GDP. but i said the third one was no because it was a purely financial transaction. things with stocks or bonds are usually not counted.</p>
<p>But commission is salary...and arent wages from businesses counted in GDP?</p>
<p>or are commissions not salary??</p>
<p>I thought that the macro was pretty straightforward, whereas the micro exam I had to think about a lot more. </p>
<p>Yeah, the last macro question actually tripped me up. I also thought commissions were a part of salary, so I said that it was included in GDP. Not sure if I'm correct though...</p>
<p>i don't know, but if you don't count the sale (as an expenditure), cause it's financial, you couldn't count the commission as income when you take the income approach. on the other hand, does it count as a service when you use a broker?</p>
<p>EDIT: Just searched online and found: "Selling a stock or bond does not add to GDP; The stock broker's commission from the sales does add to GDP." Oh well, lost a couple points.</p>
<p>It all comes down to calculating GDP via the INCOME APPROACH...</p>
<p>Because that money is his income, it is counted in the GDP.</p>
<p>Guys on the first MACRO question, did you get increase for part a i. ii. & b i. ii.? Me and one of my friends (who has also gotten all 5s on previous exams), cross checked our answers and thats what we both put. Thing is, I had the exact opposite for part a, and a large part of the problem, and with 2 minutes left... I decided against it and basically scribbled on my graph and changed every 'increase' to 'decrease' and vice versa.... lol not fun to do with 2 minutes in the test left XD</p>
<p>I think I did one wrong...because I ended up contradicting myself...just confused depreciating with appreciating or something. </p>
<p>But I did put increasing demand for part a. Which would increase interest rates. </p>
<p>Then I think I put increase demand for US dollars for b </p>
<p>But then I put an increase in exports...when I now know was probably decrease.
So then I got the next part was increase in AD, which would increase PL and output. </p>
<p>Then I put that an increase in AD, would decrease unemployment because of the SRPC (even though it's been proven wrong). </p>
<p>So...yea...don't really get why I put that stuff. </p>
<p>Maybe ill pull off a few points.</p>
<p>For #1 I said increase in demand for money. Because they want to hold more. Interest rates would go up. Then for the next part it said that US prices fell relative to the rest of the world, so I said demand for US dollars would fall, b/c they need fewer US dollars to buy the cheaper US goods. The price of the dollar falls, so exports up, and then increase in AD. Anyone put the same thing?</p>
<p>If I said that exports increase...but my reasoning was wrong, do I lose that point or two?? Or do I just get like...1 point out of the two. </p>
<p>If that's right...then I will get the AD right because I got the exports right...which will give me more points than I expected. phew. </p>
<p>Not good...but better than nothing.</p>
<p>writon, i said that the demand for $ would inc b/c since everything is cheaper, people will pump their money into the us's cheap products. because they want to buy us stuff cause its cheap, then that deamnd would pump up $ prices. since we know that the pl is lower in the Us, then it also makes logical sense that exports will go up cause of the fact that things are cheaper in the us than in japan</p>
<p>Will I get any points for having graphed market for loanable funds? I know I saw "money market" but I figured they were looking for that....</p>
<p>Is there a concensus on GDP for 3? Im pretty sure rent doesnt count.</p>
<p>if the dollar appreciates, exports wouldn't go up. exports go up if US dollars are cheap relative to foreign currencies. so i still think the price of the dollar goes down.</p>
<p>^ I agree. For micro, bulk taxing increases ATC, so P and Q dstay constant, but profits decrease for the monopoly, right?</p>
<p>that's what i said. what about the per unit subsidy?</p>
<p>if u think about it, the result of pumping money into the econ is bringig the value of the $ up, so in the short run exports go up but in the long run they will go down</p>
<p>For the per-unit subsidy, I said it decreases MC, so quantity goes up, and price goes down. I said profits would increase, because since the monopolist is producing on the elastic portion on the demand curve, an increase in price will increase revenue. Because production costs are the same, the additional revenue will yield additional products.</p>