Federal Funds Rate 4 3.5 3 2.5 2 1.5 " S D 1 150 200 250 300 350 Quantity of Reserves IOR (interest on reserves). ON RRP (reverse REPO rate) Refer to the figure below: Price Level (average price) a Gap AD Excess AD AD 5.8 6.0 6.2 Real Output (trillions of dollars per year) If the marginal propensity to consume was 0.65, how large would each of the following need to be in order to restore full-employment equilibrium? Instructions: Round your responses to one decimal place. a. A tax increase $ billion b. A government spending cut $ billion. c. A cut in income transfers $ billion

Round Deposits Required Reserves of 20% Excess Reserves New Loans None of loan proceeds are held as currency in circulation by people Loan proceeds redeposited 1 $500 $100 $400 $400 0 $400 2 $400 $80 $320 $320 0 $320 3 $320 $64 $256 $256 0 $256 4 $256 $51.20 $204.80 $204.80 0 $204.80 5 $204.80 $40.96 $163.84 $163.84 0 $163.84 6 $163.84 $32.77 $131.07 $131.07 0 $131.07 7 $131.07 $26.21 $104.86 $104.86 0 $104.86 8 $104.86 $20.97 $83.89 $83.89 0 $83.89 9 $83.89 $16.78 $67.11 $67.11 0 $67.11 10 $67.11 $13.42 $53.69 $53.69 0 $53.69 Totals $2231.57 $417.31 $1785.26 $1785.26 0 $1785.26   Calculate the new money supply. (Enter response here.)   Calculate the money multiplier.

1. A bank is offering to sell four-month certificates of deposit for $ 4,926. At the end of four months, the bank will pay $5,000 to the certificate owner. Based on a four-month interest period: a) What is the interest rate the bank is paying you? b) What are the nominal and effective interest rates on this certificate of deposit?

Illustrate how the Cash Balances change over time?

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If Tiffany redeemed a bond that earned 5% interest over the past 10 years, which function of money was BEST represented in this scenario? A. medium of exchange B. store of value C. standard of value D. unit of account

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01 21. POOR CREDIT Cathy Cox has poor credit but she found a bank that will lend her $4200 when she uses some collateral. Still, the bank charges a 12% discount rate. Find (a) the proceeds if the note is for 10 months and (b) the effective interest rate charged by the bank.

Please help me with this question. Thank you 1. Show (using the credit/debit tables) how each of the following would affect the USBalance Of Payment. Your records should include a description of the transaction beingrecorded, which specific account is affected, and the accompanying credit/debit entry. a. You import a fax machine from the Italian company Olivetti and pay for yourpurchase with a $100 check. Olivetti deposits your check in a US bank. b. You buy lunch in France that cost $50 and pay by Visa card. French restaurantreceives payment from your credit card company. c. You buy a newly issued share of the U.K. oil giant British Petroleum (BP). Youplace the order with your stockbroker paying $100 from your stockbroker account.British Petroleum deposits the money in a US bank.  d. US banks forgive a $50 M debt owed by the government of Argentina throughdebt restructuring. US banks who hold the debt thereby reduce the debt by creditingArgentina's bank accounts.  e. A U.S.-owned…