Macroeconomics Critical Analysis

Aug 7th, 2013
SKTFaker
Category:
Other
Price: $15 USD

Question description

Was needing some help with these Critical Analysis questions for chapter 13 & 14 please.

 Chapter 13

15) How would the following influence the growth rates of the M1 and M2
money supply figures over time?

a) An increase in the quantity of U.S. currency held overseas

b)  A shift of funds from interest-earning checking deposits to money market mutual
funds

c)  A reduction in the holdings of currency by the general public because debit cards
have become more popular and widely accepted

d) The shift of funds from money market mutual funds into stock and bond
mutual funds because the fees to invest in the latter have declined

17) Suppose that the reserve requirement is 10 percent and the balance sheet
of the People’s National Bank looks like the accompanying example.

a) What are the required reserves of People’s National Bank?  Does the bank have any excess reserves?

b) What is the maximum loan that the bank could extend?

c) Indicate how the bank’s balance sheet would be altered if it extended
this loan.

d) Suppose that the required reserves were 20 percent.  If this were the case, would the bank be in a position to extend any additional loans? Explain.

Chapter 14

4) Historically, shifts toward a more expansionary monetary policy have often
been associated with increases in real output. Is this surprising?  Why or why
not?  Can an expansion in the money supply increase real output and employment? 
Why or why not?

5) What impact will an unanticipated increase in the money supply have on
the real interest rate, real output, and employment in the short run?  How will expansionary monetary policy affect these factors in the long run?  Explain.

14) Did monetary policy contribute to the economic crisis of 2008?  Why or why not?  How did monetary policy makers respond to this crisis?  Has their response created an environment for future stability and growth? Explain. 


 

Tutor Answer

(Top Tutor) Daniel C.
(997)
School: University of Maryland
PREMIUM TUTOR

Studypool has helped 1,244,100 students

7 Reviews


Summary
Quality
Communication
On Time
Value
kpcutie
Dec 6th, 2016
" Excellent job "
Hemapathy
Nov 22nd, 2016
" all I can say is wow very fast work, great work thanks "
BlueOcean
Nov 9th, 2016
" Awesome! Exactly what I wanted. "
kevin12622
Oct 31st, 2016
" Goes above and beyond expectations ! "
ashleyisgod
Oct 17th, 2016
" Top quality work from this guy! I'll be back! "
likeplum4
Oct 8th, 2016
" Excellent work as usual "
Molly_Moon
Sep 25th, 2016
" AMAZING as always! "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1819 tutors are online

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors