monetary, Macroeconomics

Assignment Help:

1. Suppose the banking system has reserve of $750000, demand deposits of $2500000 and a reserve requirement of 20%.

a. if the fed now purchases $125,000 worth of govt bonds from the public, what are the excess reserves of the banking system? (Assume the public deposits the entire $125,000 in the demand deposits)
b. How much can the banking system increase the money supply by, given the new reserve position?

c. Using graphs, explain in detail how the change in moneysupply affects investment demand and as a consequence, aggregate demand. What roles does the spending mutliplier play in this process? Explain.

d. What is the impact of the FED''''s actions on GDP, umemployment, and inflation?

Related Discussions:- monetary

The Business Cycle, I would like to know one of the external determinants i...

I would like to know one of the external determinants in Spain''s recovery, please?

Explain the term production function in the economics, Explain the term pro...

Explain the term production function in the economics. Production Function A production function is the association between the quantity of inputs a firm utilizes and the qu

Ricardo Viner Model, How does the Ricardo Viner diagram react when once pri...

How does the Ricardo Viner diagram react when once price changes, effects on real wages, and labor allocation?

frame work, Hello sir, madam... I am hassan PHD student. I''m lost to get...

Hello sir, madam... I am hassan PHD student. I''m lost to get a good frame work of my thesis about e government and economic growth. and I need to know how to measure the variable

Determine the rate of economic growth , Determine the rate of economic grow...

Determine the rate of economic growth in UK With regard to economic growth, a good starting point for evaluation and analysis is the fact that rate of economic growth in UK has

Impact will high and variable rates of inflation, What impact will high and...

What impact will high and variable rates of inflation have on the economy? How will they influence the risk accompanying long-term contracts and related business decisions?

How do countries grow economic growth, How do countries grow Economic growt...

How do countries grow Economic growth? Economic growth is attaining by increasing: • Quantity of resources by investment • Quality of resources by training as well as R

Says law , is there a graph for says law?

is there a graph for says law?

How commercial banks create money, How commercial banks "create money" ...

How commercial banks "create money" Commercial banks obviously cannot influence the amount of currency in the economy or the monetary base, since they are not allowed to print

Quantity equation, Quantity Equation-Has this theory worked? Why or why not...

Quantity Equation-Has this theory worked? Why or why not?

Write Your Message!

Captcha
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