Interest Rate (percent) 14 #2086TNO 10+ 4+ I Money Market 1 1 20 40 60 I Ms1 % 140 100 120 160 Mp 180 200 (billions of dollars) Fill in the Blank Question Referring to the graph, if the Fed has deter need to fall to 6% and the reserve requirem change in reserves necessary to change the amount? $ billion

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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i need to know all the formulas 

ONE
Interest Rate (percent)
ON AS
10
1
1
Money Market
I
1
1
Ms.1
Mp
20 40 60 80 100 120 140 160 180 200
Money (billions of dollars)
Fill in the Blank Question
K
Referring to the graph, if the Fed has determined that the interest rates
need to fall to 6% and the reserve requirement is 0.2, what will be the
change in reserves necessary to change the money supply by the correct
amount? $
billon
Transcribed Image Text:ONE Interest Rate (percent) ON AS 10 1 1 Money Market I 1 1 Ms.1 Mp 20 40 60 80 100 120 140 160 180 200 Money (billions of dollars) Fill in the Blank Question K Referring to the graph, if the Fed has determined that the interest rates need to fall to 6% and the reserve requirement is 0.2, what will be the change in reserves necessary to change the money supply by the correct amount? $ billon
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