The following questions are based upon the following data from your practice midterm, with the amounts changed. Problem I Problem II Year 1 Year 2 Year 1 Year 2 Taxes, T: 400 400 400 300 Consumption, C: 882 468 ___ Net Investment, I: ___ 340 286 Government Spending on Goods, G: 500 500 200 200 Interest Rate: 7.7% 6.8% 1.2% 8.2% Cash Held by Public: 400 200 400 400 Demand Deposits: 600 300 600 600 Depreciation, D: 200 200 200 200 GDP: 1736 1048 1952 1966 Price Level, P: 2 2 2.5 2.5 Money Supply

Which of the following best explains why treasury bonds have an effect on the size of the money supply? a. the amount of treasury bonds in circulation affects both unemployment and inflation. b. the government can spend more money and charge lower taxes by using treasury bonds. c. the federal reserve bank can buy and sell these bonds to raise or lower bank deposits. d. the interest paid on treasury bonds influences the interest rates charged by private banks. 2b2t

The following information is available for jase company: market price per share of common stock $25.00 earnings per share on common stock $1.25 which of the following statements is correct? a. the price-earnings ratio is 20 and a share of common stock was selling for 20 times the amount of earnings per share at the end of the year. b. the market price per share and the earnings per share are not statistically related to each other. c. the price-earnings ratio is 5% and a share of common stock was selling for 5% more than the amount of earnings per share at the end of the year. d. the price-earnings ratio is 10 and a share of common stock was selling for 125 times the amount of earnings per share at the end of the year.

Amano s preguntes cationing to come fonds and consumer good 8. why did the u.s. government use rationing for some foods and consumer goods during world war ii?