Explain how would we measure the cost of the project

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Q. Assume that raising the marginal income tax rate raises $200B which could be spent on infrastructure projects. How would we measure the cost of the project to determine whether it is worth undertaking?

Q. Assume that the following data describe the condition of the commercial banking system: Total Reserves: $200 billion Transactions deposits: $800 billion Cash held by public: $100 billion Reserve requirement: 0.20 a. b. c. d. e. f. How large is the money supply (M1)? Are the banks fully utilizing their lending capacity?

Reference no: EM1359145

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