+1-415-315-9853

info@mywordsolution.com

Economics

 Basic Economics Macroeconomics Microeconomics Business Economics Econometrics International Economics Managerial Economics Game Theory Public Economics

Calculating money multiplier, nominal values of deposits, currency also reserves in Keynesian closed economy model.

Consider the following Keynesian closed economy model

Real money demand : L= 0.2 Y=200r
Full employment output: Y*=500
Nominal monetary base : H= 960
Currency deposit ratio: cu=0.5

Suppose which the aggregate demand for goods is decreasing function of the interest rate
Y=.6/(.001) - r /(.001)

A. Suppose which the reserve- deposit ratio I sres=0.1 also which the economy is in long run equilibrium.

1. Illustrate what is the value of the money multiplier?

2. Illustrate what is the value of the nominal money supply?

3. Illustrate what are the nominal values of deposits, currency also reserves?

4. Illustrate what is the value of the real interest rate in long run equilibrium?
Hint: you know full employment output Illustrate what interest rate equalities the aggregate demand for goods to the aggregate supply for goods

5. Illustrate what is the value of the price level in long run equilibrium?
Hint: you know full employment output also the supply. Illustrate what does the price level have to be so which the money marketplace is equilibrium?

6. Illustrate what is the value of velocity in long run equilibrium?

B. Suppose which, as a result of a financial crisis, banks become reluctant to make loans also they want to increase their reserve holding relative to deposit. Specifically, the reserve deposit ratio increases to res=0.7

1. Suppose which the central bank maintains the value of monetary base equal to 960.

a. Illustrate what is the new value of the money multiplier?

b. Illustrate what is the new value of the nominal money supply?

c. Given the new value of the nominal money supply, Illustrate what are the short run equilibrium values of output also the real interest rate whenever the price level remains fixed at its value

d. Illustrate what is the new long -run equilibrium value of the price level

1.Suppose which Whenever the reserve - deposit ratio increase to ares0.7 , the central bank immediately changes the monetary base to maintain output also the price level at their long run equilibrium values .Illustrate what value of the monetary base will maintain the level of output also the price level unchanged?

• Reference No.:- M916618

Have any Question?

Assignmentyou must submit 2 files to this link once done as

Assignment You must submit 2 files to this link once done as follows: Part 1) An MS Excel spreadsheet (.xls or .xlsx no other file formats will be accepted) use the dataset spreadsheet provided for the assignment and inc ...

Free Trade and Restricted Trade - Benefits and Cost 1-2 paragraphs APA format/ no plagarism Using your own words, define both free and restricted trade. What do you feel are the benefits and the cost to having free trade ...

1 there is a small country whose domestic demand and supply

1) There is a small country whose domestic demand and supply for a good x are given below (where P is the price of X) [drawing a demand and supply graph may be helpful to you, but is not required.] D: P=100-Q S: P=10+2Q ...

Assessment task in this assessment students are required to

ASSESSMENT TASK: In this assessment, students are required to demonstrate their ability to apply economic principles learnt in this subject to analysing real-world business operations and evaluate how their long-run busi ...

Assignmentmoral and ethical requirements should serve as

Assignment Moral and ethical requirements should serve as drivers which encourage a business to invest in or spend money on cybersecurity products, services, and programs. You have been invited to participate in a "light ...

Assessment task descriptiontopicstudents will be required

ASSESSMENT TASK: DESCRIPTION Topic Students will be required to choose a specific enterprise (it should ideally be one with which they are somewhat familiar) and develop a sustainability indicators monitoring system for ...

Allocation and allotments please respond to the following1

"Allocation and Allotments" Please respond to the following: 1. From the first e-Activity, examine and evaluate the disparity of Georgia budget allocation for education and property tax to the various localities. Based o ...

Assignmentinstructions1 select an illegal activity and

Assignment Instructions 1. Select an illegal activity and transform/mask its' true purpose with the disguise of a legitimate business operation. In other words, create a start-up business that would be viewed as a legal ...

Assignmentpart idirections please write a paper that is at

Assignment PART I Directions: Please write a paper that is at least two to three pages in length in which you address the questions below. Write your paper in APA format with at least one cited scholarly reference. Revie ...

Chapter 1 managing changeq1 figure 176 shows how bad an

Chapter 1 Managing change Q1 Figure 1.76 shows how bad an implementation can become. Action needs to be taken to prevent this kind of situation. What would you recommend should be done? Q2 You are the project manager for ...

• 13,132 Experts

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen