the core of macroeconomics, Macroeconomics

Suppose in the Republic of Madison that the regulation of banking
rested with the Madison Congress, including the determination of
the reserve ratio. The Central Bank of Madison is charged with regulating
the money supply by using open market operations. In
April 2011, the money supply was estimated to be 52 million hurls.
At the same time, bank reserves were 6.24 million hurls and the
reserve requirement was 12 percent. The banking industry, being
“loaned up,” lobbied the Congress to cut the reserve ratio. The
Congress yielded and cut required reserves to 10 percent.What is
the potential impact on the money supply? Suppose the central
bank decided that the money supply should not be increased. What
countermeasures could it take to prevent the Congress from
expanding the money supply?
Posted Date: 10/28/2014 10:05:17 AM | Location : Indonesia







Related Discussions:- the core of macroeconomics, Assignment Help, Ask Question on the core of macroeconomics, Get Answer, Expert's Help, the core of macroeconomics Discussions

Write discussion on the core of macroeconomics
Your posts are moderated
Related Questions
what have you learned from the class

Those economists who believe that monetary policy is more potent than fiscal policy argue that the: A) Responsiveness of money demand to the interest rate is large. B) Responsive

Suppose that several months of data showed the CPI increasing at a 4.5% annual rate due largely to increases in the price of energy and food related commodities following several y

Question 1 Discuss the relationship between microeconomics and macroeconomics Question 2 What do you understand production method? What precaution should be taken while

A sample of 2,000 licensed drivers revealed the following number of speeding violations. 0 violations for 1,910 drivers. 1 Violations for 46 drivers. 2 violations for 18 drivers. 3

Macroeconomics deals with the economy as a whole. The millions of individual microeconomic decisions of the people, businesses, and government in their totality represent a nation'

Danny is an investment banker and has income I = 300. When prices are px = 10 and py = 20, Danny consumes the bundle (x; y) = (6; 12). 1. Illustrate Danny's budget constraint

Analyze the relationship between the production possibilities curve and the circular flow diagram. Discuss how the change of production possibilities curve affects the circular flo

The more certain private property rights are, a. the less people need to invest in education or human capital development. b. The less entrepreneurship there will be. c. t

Oligopoly is a marketplace where the deliver is controlled by a small group of companies. In this condition, the actions of single company will have a material effect on the whole