Changes on monetary base

Assignment Help Macroeconomics
Reference no: EM1314347

Calculate the effect of the following events on the monetary base:

a) The Treasury writes checks to Social Security recipients for $600 million.

b) The Federal Reserve buys a new fleet of cars for $8 million.

c) The Treasury transfers $500 million from its tax and loan accounts to its account with the Federal Reserve.            

d) The Federal Reserve buys $1400 million of Treasury bills in the open market.

e) The Federal Reserve sells $1.5 billion of its German bonds for euros.

Reference no: EM1314347

Questions Cloud

Calculation of current price of the bond : Calculation of current price of the bond and its yield to maturity is 10 percent with semiannual compounding
Borrowings and open market purchases : Recently, a troubled bank borrowed $800 million from the Federal Reserve. Describe the impact this event had on the monetary base.
Determine the cost of equity capital : Determine the cost of equity capital using the following methods, Constant growth rate dividend capitalization model approach and the capital asset pricing model approach
Proportions for the two commercials : If the computed value for this problem is +2.33, and the level of significance is 0.05, can we conclude that the recall proportions for the two commercials are same?
Changes on monetary base : Calculate the effect of the following events on the monetary base:
Objective type questions on bond valuation : Objective Type questions on bond valuation and Long-term debt that matures within one year and is to be converted into stock should be reported
Purpose journal entries to record these events : Calculation of applied manufacturing overhead based on direct labor hour rate - Purpose journal entries to record these events. Use those journal entries.
Finding p-value for specific level of significance : At the .05 level of significance, can we conclude that those joining Weight Reducers on average will lose less than 10 pounds? Determine the  p -value.
Fed advances and discounts on monetary base : Suppose, in a given week, float raises $900 million, Treasury deposits at the Fed rise $1500 million, discounts and advances decline $200 million, and foreign deposits at the Fed increase $150 million.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation and output ratio

Suppose that natural real GDP is constant.  For every 1 percent increase in the rate of inflation above its expected level, firms are willing to increase real GDP by 2 percent.

  Canadian inflation and money supply growth

In the 1970s people had become accustomed to high inflation. In 1979, Bank of Canada decided to fight inflation and decreased the money supply growth rates.

  Implications of bankruptcy on lenders

Explain why Brownstown's management was reluctant to release this information to its lenders.

  Ad and as model

Describe how a change in investment can have big impact on GDP causing a nationwide slump. Recall that investment is "small" relative to the entire economy.

  Discussion-non price competition

Explain how advertising can be employed to allow Tots-R-Us to keep price average above cost without encouraging entry.

  Consumption at equilibrium level of income

Suppose planned investment falls by 100. Graphically illustrate using the AE-Y graph the effects of this reduction in planned investment on the economy. Also calculate the new equilibrium level of income.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Government regulation on extraction of natural resources

Taxi fares in New York recently were increased by nearly 50%. Predict the effect on the price of taxicab medallions, the earnings of taxicab drivers and congestion in New York streets.

  Terms of trade and calculate the gains from trade

Answer the next three questions on the basis of the following production possibilies data for Francia and Galacia. All data are in tons.

  Explain international monetary system

Explain International Monetary System

  Export and import shift due to changes in tastes

The Heckscher-Ohlin model assumes that tastes are the same in Home and Foreign. Suppose now that tastes are different in Home and Foreign.

  Deposit creation process using deposit multiplier

What is the net effect on the money supply in the economy? Show your work. Assume instead that Sammy uses the $10,000 he receives to pay back a loan from Bad Boys Bank. $8,000 goes to repay the loan itself, and $2,000 represents his Interest payme..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd