Home » ) Let CD = \$1030b, c =0.94, TR = \$120b a.) Calculate Cu, RR, ER, e and B.) Calculate m 1 and M 1 .) Let c rises to 0.98 ceteris paribus.) Calculate m…

# ) Let CD = \$1030b, c =0.94, TR = \$120b a.) Calculate Cu, RR, ER, e and B.) Calculate m 1 and M 1 .) Let c rises to 0.98 ceteris paribus.) Calculate m…

1.) Let CD = \$1030b, c =0.94, TR = \$120b

a.) Calculate Cu, RR, ER, e and B.

b.) Calculate m1 and M1.

2.) Let c rises to 0.98 ceteris paribus.

a.) Calculate m1′ and M1′.

b.) Draw inference on money supply.

3.) Let e rise to 0.0170, ceteris paribus.

a.) Calculate m1″ and M1″.

b.) Draw inference on money supply.

4.) Let Bnb = \$990b

a.) Calculate DL.

b.) If the Fed buys T-securities in the amount of \$60b, ceteris paribus, how much               will be the new monetary base?

c.) Calculate new M1.

d.) Draw inference on money supply.

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