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Question1.The Federal Reserve buy $100 million worth of government securities in open market. If the required reserve ratio is .6, determine the maximum possible increase in the money supply?
Question2.Please describe how the change in the money supply may impact AD and real GDP
Question3.Assume that the economic news is not good and businesses become pessimistic about the future. How would this change in attitude affect the investment demand curve and the impact on real GDP?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M9309717

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