### Using a required reserve ratio

##### Reference no: EM13861987

Using a required reserve ratio of 10% and assuming that banks keep no excess reserves, what is the value of government securities the Fed must purchase if it wants to increase the money supply by \$2 million?

#### Compute accounting and economic profits

Peggy Sue's cookies are the best in world, or so I hear.  She has been offered a job through Cookie Monster, Inc., to  come to work for them at \$125,000 per year.

#### Policies with regard to an inflationary gap

Assume that the government’s economic outlook is shaped by Keynesian economic philosophy and policies with regard to an inflationary gap. Explain and use the AD/AS model to sh

#### What is the initial effect of this change on inventories

Draw a Keynesian cross graph and assume that macro economy starts and ends at equilibrium. Label the initial aggregate demand line AD0, Then show what happens in the diagram w

#### Suppose that the velocity of money is constant

Suppose that the velocity of money is constant. Real GDP grows by 2 percent per year, the money stock grows by 10 percent per year, and the nominal interest rate is 10 percent

#### How might the future look in context of these twin crises

In Carbon Democracy, Timothy Mitchell argues that the world is facing “twin crises” that will radically change our current ways of living, and in particular our current forms

#### Unemployment spells and long term unemployment

Unemployment spells and long term unemployment. According to the data presented in this chapter, about 47% of unemployed workers leave unemployment each month. What is the pro

#### Rate of change in labor productivity over the year

Between Q1, 2014 and Q1, 2015 measured Output in the non- farm business sector increased by 3.2%. During this time period the unemployment rate fell from 6.6% to 5.5% and tota

#### Production function constant returns to scale

Consider an economy with the following production function: Assignment 3 Y = AK.5L.5 The labour force is constant. The rate of depreciation is δ = .1, the savings rate is s =