Reference no: EM1371427
Q. 1.Suppose a bank has $200,000 in deposits, a required reserve ratio of 10 percent and bank reserves of $50,000. Then bank can make new loans in amount of?
1a. If required reserve is decreased, Explain how do you Explain how that on a graph (investment demand)?
1b. If required reserve is decreased, illustrate what happens to equilibrium price level and output rate (assuming AS is sloping upward)_
2. Illustrate what is included in determining any of measures of money supply?
3. If spending increase is 80% and it increases by $40 billion, Explain how does that change GDP?
4. Do import taxes, income taxes or govt expenditures have an effect on AD?
5. If Fed is stimulating economy, Explain how does that affect (plus or minus) interest rates, money supply, and-or investment and does AD or AS shift right or left?
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Illustrate what is included in determining any of measures
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