just part d The following questions are True, False, or Uncertain. Write 2-3 sentences to justifyyour answer. Graphs, when appropriate, will increase your professor's utility.An increase in a country's savings rate will increase the level of output per capita(Y/L), but it will not lead to sustained economic growth.b. An economy that is experiencing rapid "sectoral shifts" in which some industriesgrow rapidly and other shrink will see an increase in the natural rate ofunemployment.c. Inflation that is higher than expected redistributes wealth from debtors tocreditors.d. If the Federal Reserve purchases $5 million in government bonds, and if therequired reserve ratio is 10%, the largest possible increase in the money supply is$50 million.e. A recession will cause an economy's long-run aggregate supply curve to shift tothe left. (Note: This is from Chapter 20, which we will cover on April 26)

Largest possible increase in money = Initial increase in money supply * money multiplier. Money…

Answered: d. If the Federal Reserve purchases $5…

d. If the Federal Reserve purchases $5 million in government bonds, and if the required reserve ratio is 10%, the largest possible increase in the money supply is $50 million.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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