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Describe the current equilibrium level of disposable national Income using a Keynesian Cross Diagram.

Monetary Data (Private Banking Industry)

Cash 1,000
Checking Accounts 2,500
Short Term Savings Accounts 1,500
Required Reserves 1,000
Excess Reserves 0,000
US Government Securities 10,000

Monetary Data (FED)

Discount Rate 6.00%
Us Government Securities 100, 000

Macroeconomic Data

C= 1000+0.75(YD); G=1,000; YF=9,000

1844_Keynesian Cross Diagram.jpg

Part 1: Determine the current equilibrium level; of disposable national Income. Be sure to use a Keynesian Cross Diagram to illustrate your answer.

Part2: Asses the current state of macroeconomics affairs.

Part3: Design a detailed monetary policy to attain your objectives.

Part4: Clearly illustrate your policy. Describe the chain of events leading to the new macroeconomics equilibrium. Pay attention to detail of implementation.

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M920523

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