Suppose the Federal Reserve decided to purchase $50 billion worth of government securities in the open market. Instructions: Enter your responses as a whole number a. By how much will MT change initially if the entire $50 billion is deposited into transactions accounts? M1 will initially [Click to select by S billion. b. How will the lending capacity of the banking system be affected if the reserve requirement is 10 percent? Total lending capacity will Click to select) by $4billion c. How will banks induce investors to utilize this expanded lending capacity? As the money supply increases, interest rates will (Click to select and investors will want to borrow [icles to select) funds

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Q: Thanks you, U explained very well

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Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.