# Economics -Money supply and Money multiplier equation

Jan 13th, 2014
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Price: \$30 USD

Question description

 Can anyone help me with these problems??Complete the following problems 1.  Calculate the money multipliers for the following reserve requirements when individuals hold no cash; a.  5% b.  10% c.  20% d.  25% e.  50% 2.  If the reserve requirement is 20% and individuals hold no cash, calculate the amount of government securities that the Fed would need to either buy or sell to increase the money supply by \$2 million, and indicate if they buy or sell. 3.  Does the value of the dollar rise or fall for each of the following: a.  Fed makes substantial purchase of securities b.  Banks increase lending 4.  If the money supply is \$500, the velocity is 8 and the price level is \$2, calculate: a.  The level of nominal output (GDP) b.  The quantity of production c.  If the money supply rises by 20%, calculate the new level of nominal output d.  If prices remained unchanged, calculate the new quantity of production.

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Jan 13th, 2014
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