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Question MACRO1(ECON1010) Assignment 2

Question MACRO1(ECON1010) Assignment 2

Question
MACRO1(ECON1010) Assignment 2

(Chapter 28, 26&28)

Submit online by: 4PM 5thOct (Monday)

(‘Assessment Task’ in Blackboard)

Tutorial Time and Day:

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Student Name:

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ID:

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This assignment covers the following topics:

· Monetary System (Chapter 29)

· Inflation: Its causes and costs (Chapter 30)

· Aggregate demand and supply (Chapter 33)

Instructions to students:READ THE FOLLOWING FIRST (VeryImportant)

· This assignment contributes to 15% of the overall marks for the course.

· Use this Word template for your submission (ie, write down your answers in the space provided in each question and submit) –the other form of the file is no longer accepted in e-submission.

· The recommended browser is Chorme, Firefox or Explorer (some have suggested that Safari might not work).

· The font size has to be at least 12.

· Explain your answers, but be succinct.

· Label and explain any diagrams, if any, that you use carefully (labelling each axis).

· Show all of your working in order to get partial credits

· You only havea single attemptof submission (ensure to attach the final version oftheassignment)

· After the due date,any submission will be marked as ‘late’(a penalty of 10% (1.5 marks) per day will apply).

· If you like to get an approval for an extension for the assignment, you must apply for the special consideration with the supporting evidence. See the policy:

· http://www1.rmit.edu.au/students/specialconsideration

· Make sure you have included student ID and name in the front page of the assignment

· Working with other fellow students is strongly encouraged.However, you cannot just copy your friend’s answers. If we find out this, you will be harshly punished for the academic plagiarism. See RMIT’s policy on this:

· http://www1.rmit.edu.au/browse;ID=sg4yfqzod48g1

· For other assessment policies, please see the folder ‘Assessment guides and policies’ in Blackboard.

Short Answer Questions:

· Provide the answers in the space provided below

· The font size has to be at least 12.

1) (4 marks in total).You have decided to deposit $2,000 in a savings account in the Commonwealth Bank, which does not have any excess reserves at the time when you make a deposit. (1 mark for each)

a) How does your deposit change the Bank’s T-account? Show the T-account changes.

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