How much will nominal gdp expand

Reference no: EM131444452

Question: 1. (a) Explain what would happen if banks were notified they had to increase their required reserves by one percentage point from, for example, 9% to10% of deposits.

(b). What would their options be to come up with the cash?

2. All other things being equal, by how much will nominal GDP expand if the central bank increases the money supply by $100 billion, and the velocity of money is 3?

Reference no: EM131444452

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