What will be the new money market equilibrium

Assignment Help Basic Computer Science
Reference no: EM131966298

Suppose that the current money market equilibrium has an interest rate of 5 percent and a quantity of $2 trillion. Suppose that at a 6 percent interest rate, the quantity of money demanded is $1.5 trillion, while at a 4 percent interest rate it is $2.5 trillion. If the Fed makes an open-market purchase of $50 billion, and the money multiplier is 10, what will be the new money market equilibrium?

a.An interest rate of 6 percent and a quantity of $1.5 trillion.

b.An interest rate of 5 percent and a quantity of $2 trillion.

c.An interest rate of 4 percent and a quantity of $2.5 trillion.

c. none of the above

Reference no: EM131966298

Questions Cloud

Plan for implementing a training and development program : Review Table 8-4 "Developing and Implementing a Code of Ethics" (Chapter 8). Outline a plan for implementing a training and development program in your current.
How are you building credibility : Logic: What is your reasoning and why? Credibility: What evidence are you using? How are you building credibility?
Elasticity and pricing : Suppose the number of firms you compete with has recently increased. You estimated that as a result of the increased competition
Using the marginal approach : Suppose your company runs a shuttle business of a hotel to and from the local airport. The costs for different customer loads are:
What will be the new money market equilibrium : If the Fed makes an open-market purchase of $50 billion, and the money multiplier is 10, what will be the new money market equilibrium?
Raw material stage of economic development : Locate a country in the agricultural and raw material stage of economic development and discuss what changes will occur in marketing
Analyze key elements of emerging enterprise organizations : The purpose of this project is for you to use various management technique in running a small business to create a contingency management plan.
Describe three lines of evidence from the video that refute : There have been many hypotheses about Neandertals place. Describe three lines of evidence from the video that refute the notions that Neandertals were subhuman.
Representative basket of goods and services : If a company produces $30 million worth of pottery, 30 percent of which is sold on the domestic market and 70% which is exported overseas, then GDP

Reviews

Write a Review

Basic Computer Science Questions & Answers

  Identifies the cost of computer

identifies the cost of computer components to configure a computer system (including all peripheral devices where needed) for use in one of the following four situations:

  Input devices

Compare how the gestures data is generated and represented for interpretation in each of the following input devices. In your comparison, consider the data formats (radio waves, electrical signal, sound, etc.), device drivers, operating systems suppo..

  Cores on computer systems

Assignment : Cores on Computer Systems:  Differentiate between multiprocessor systems and many-core systems in terms of power efficiency, cost benefit analysis, instructions processing efficiency, and packaging form factors.

  Prepare an annual budget in an excel spreadsheet

Prepare working solutions in Excel that will manage the annual budget

  Write a research paper in relation to a software design

Research paper in relation to a Software Design related topic

  Describe the forest, domain, ou, and trust configuration

Describe the forest, domain, OU, and trust configuration for Bluesky. Include a chart or diagram of the current configuration. Currently Bluesky has a single domain and default OU structure.

  Construct a truth table for the boolean expression

Construct a truth table for the Boolean expressions ABC + A'B'C' ABC + AB'C' + A'B'C' A(BC' + B'C)

  Evaluate the cost of materials

Evaluate the cost of materials

  The marie simulator

Depending on how comfortable you are with using the MARIE simulator after reading

  What is the main advantage of using master pages

What is the main advantage of using master pages. Explain the purpose and advantage of using styles.

  Describe the three fundamental models of distributed systems

Explain the two approaches to packet delivery by the network layer in Distributed Systems. Describe the three fundamental models of Distributed Systems

  Distinguish between caching and buffering

Distinguish between caching and buffering The failure model defines the ways in which failure may occur in order to provide an understanding of the effects of failure. Give one type of failure with a brief description of the failure

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