Federal reserve would increase the money supply

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Reference no: EM131165727

1) Explain the 4 ways the Federal Reserve would increase the money Supply and explain and graph how this would impact interest rates, consumption, investment, AD, GDP, Prices and Unemployment. (Make sure to include both the money and the goods graph).

2) Calculate and graph (both the money and goods graph) what would happen if the Fed. Increased ER = 100 billion and the RRR = .10.

Reference no: EM131165727

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