Macroeconomics
Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Chapter 25, Problem 5SPA

(a)

To determine

Determine the value of monetary base and the quantity of money.

(b)

To determine

Determine the bank’s desired reserve ratio and the currency drain ratio.

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Use the Feynman technique throughout. Assume that you’re explaining the answer to someone who doesn’t know the topic at all:
Use the Feynman technique throughout. Assume that you’reexplaining the answer to someone who doesn’t know the topic at all: 4. Draw a Keynesian AD curve in P – Y space and list the shift factors that will shift theKeynesian AD curve upward and to the right. Draw a separate Classical AD curve in P – Yspace and list the shift factors that will shift the Classical AD curve upward and to the right.
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