Explain how do you calculate the actual dollar reserves

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Reference no: EM1360396

1. Fiscal policy refers to the spending and taxing policies used by the government to influence the economy.

2. During recessions, government spending usually increases because unemployment payments increase.

3. Assuming there is no foreign trade in the economy, equilibrium is achieved when government purchases equal saving plus net taxes minus investment.

4. How do you calculate MPC?

5. For the economy to be in equilibrium investment plus tax revenue must equal government purchases plus saving

6. Why or how is the U.S. dollar an example of fiat money? What is money?

7. Commercial banks are financial intermediaries that lend funds and accept deposits

8. How do you calculate reserve ratios?

9. Explain how do you calculate the actual dollar reserves that must be kept on hand?

10. What activities are responsibilities of the Federal Reserve?

Reference no: EM1360396

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