I need help on D through H! Please! Suppose the reserve requirement is 8% and a new deposit of $900 billion is made into the banking system. Create T accounts to analyze the following questions. a) Initially, reserves would increase by? $900 Billion b) Required reserves would increase by? $72 billion c) Excess reserves would increase by? $828 billion d) The first round of loans would amount to? e) The second round of loans would amount to approximately? f) For the entire macroeconomy, after the infinite rounds of loans were taken into account, money supply would increase by? g) If the Federal Reserve bought bonds worth $600 billion, money supply would increase by? h) If the Federal Reserve sold bonds worth $600 billion, money supply would decrease by?
I need help on D through H! Please!
Suppose the reserve requirement is 8% and a new deposit of $900 billion is made into the banking system.
Create T accounts to analyze the following questions.
a) Initially, reserves would increase by? $900 Billion
b)
c)
d) The first round of loans would amount to?
e) The second round of loans would amount to approximately?
f) For the entire macroeconomy, after the infinite rounds of loans were taken into account, money supply would increase by?
g) If the Federal Reserve bought bonds worth $600 billion, money supply would increase by?
h) If the Federal Reserve sold bonds worth $600 billion, money supply would decrease by?
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for the last two questions, my answer options are
if the Federal Reserve bought bonds worth $600 billion, money supply would increase/decrease by
$6,900 billion
$828 billion
$7,500 billion
$7,000 billion
please help!
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