(Answered) What countermeasures could it take to prevent the congress

Economics

Suppose in the Republic of Madison that the regulation of banking rested with the Madison Congress, including the determination of the reserve ratio. The Central Bank of Madison is charged with regulating the money supply by using open market operations. In April 2011, the money supply was estimated to be 52 million hurls. At the same time, bank reserves were 6.24 million hurls and the reserve requirement was 12 percent. The banking industry, being "loaned up," lobbied the Congress to cut the reserve ratio. The Congress yielded and cut required reserves to 10 percent. What is the potential impact on the money supply? Suppose the central bank decided that the money supply should not be increased. What countermeasures could it take to prevent the Congress from expanding the money supply?

View complete question

Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M9358028
Price:- $20

Verified Expert

Priced at $40 Now at $20, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Macroeconomics

Question 1 graphically illustrate the minimum wage note

Question: 1) Graphically illustrate the minimum wage. Note the deadweight (welfare loss) loss and the loss or redistribution from job search. 2) Assume that you have two periods: 2011 and 2012 for a pickup truck. Price 2 ...

Question in an effort to move the economy out of a

Question: In an effort to move the economy out of a recession, the federal government would engage in expansionary economic policies. Respond to the following points in your paper on the actions the government would take ...

Question a monopolist faces the following informationthe

Question: A monopolist faces the following information: The market demand: Q=300-2P The cost Structure: TC=100+50Q a) what is the profit-maximizing price-output combination and what are the levels of profits and consumer ...

Question - a price-taking firm has the production function

Question - A price-taking firm has the production function Q = f(z 1 , z 2 ). The output price is P and the input price is w 1 and w 2 . There are two unusual things about this firm. First, rather than maximizing profit, ...

Question - a relatively new aspect to the marketplaces of a

Question - A relatively new aspect to the marketplaces of a number of cities worldwide is something called the sharing economy, in which people rent assets such as cars and rooms directly from each other. Also called a p ...

Question president trump has proposed a lowering of the

Question: President Trump has proposed a lowering of the corporate income lax rale from 35% to 15% and the top personal income tax rate from 39.6% to 15%. When lie unveiled the tax plan. Treasury Secretary Steven Mnuchin ...

Question - binyavanga wainaina and william easterly each

Question - Binyavanga Wainaina and William Easterly each wrote some satirical content regarding how western authors tend to write about Africa. (Easterly writes about the poor more generally, but much of his work is focu ...

Question - suppose that the demand and supply schedules for

Question - Suppose that the demand and supply schedules for bonds that have a face value of $100 and a maturity date one year hence are as follows: Price ($) Quantity Demanded Quantity Supplied 100 0 600 95 100 500 90 20 ...

Question according to your textbook in the aggregate supply

Question: According to your textbook in the Aggregate Supply (AS) theory an increase in output leads to an increase in the price level. What is the assumed causality? Explain why this should be considered flawed? The res ...

Question explain why the market fails to provide optimal

Question: Explain why the market fails to provide optimal quantities of: i) Positive & negative externalities ii) Public Goods iii) Common Property Resources The response must be typed, single spaced, must be in times ne ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

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.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Macroeconomics Expert