Need help on the Test Prep Questions ASAP

 

Savings deposits = $2221.5b                                                                           Demand Deposits = $1880.6b

Required reserve ratio = 9%                                            Currency in circulation = $1100.0b

Vault Cash = $91.5b                                                                          Household money market mutual fund = $1753.3b

Certificates of deposit (value< $100,000) = $2450.0b             Banking system deposits with the Fed = $208.2b

Household money market deposits accounts = $1588b                            Certificates of deposit (value > $100,000) = $4827.6b

Institutional money market accounts = $3864.3b                                       Treasury Bills = $458.3b

 

a.   Calculate the MB.

b.   Calculate m₁ as illustrated in practice problems. Interpret the multiplier.

c.   Calculate M1 using the multiplier method.

d.   Check using the definition of M1 method.

e.   Repeat parts b-d for M2.

f.   Suggest a specific action by the Federal Reserve if the macroeconomic models suggest that a $550 billion dollar increase

      in the M2 money supply is required to bring the economy back to a full employment equilibrium.

g.  Recalculate the monetary base, multiplier, and money supply for M2 (using the equation

     approach) if households respond to new regulations by moving $80.6b from their checking accounts to household CD’s and shift

     $240.7b from their currency holdings to their savings accounts.

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Status NEW Posted 17 May 2017 03:05 AM My Price 10.00

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