Suppose that the expenditure multiplier is 2.5 and the, Ask an Expert

Economics

Suppose that the expenditure multiplier is 2.5 and the Treasury increases the government purchase of goods and services by 10 billion units. What will be the resulting change in the real GDP?

Suppose the required reserve ratio is 10% and the Fed injects $2 billions of reserves into the banking system. By how much will the money supply increase?

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M972127

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