What directive they should give to the open market desk

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Reference no: EM13154742

You have been approve adviser to the federal reserve bank.

a) federal open market committee decides that is must increase the money supply by 60. committee members tell you the reserve ratio is 0.1 and the cash to deposit ratio is 0.3. They ask you what directive they should give to the open market desk. you tell them , being as specific as possibel, using the money multiplier.

b) they ask you for two other ways they could have achieved the same end. You tell them.

c) based on the AS)AD model, tell them what you think the effect on the price level of you policy will be

Reference no: EM13154742

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