MacEc

if a bank has $100 million in deposits and $17 million in reserves with a reserve requirement of 0.15, how much does its excess reserves have?

if a bank has total reserves of $200,000 and $1 million in deposits, how much money can it lend if the required ratio is a) 4%? and b) 6%?

how much can it lend?

Washington DC- Alarmed by the rapidly weakening economy, the Federal Reserve cut a key interest rate again yesterday. This is the eighth time this year the Fed had cut the discount rate, dropping it from 4.75% at the beginning of the year to a mere .50% n...

From the end of 2011 to the end of 2012, M1 increased from $2,3111 billion to $2,546 billion. A) By what percentage did M1 increase? B) If the Fed had used a fixed rule of 3% growth of the money supply, how large [blank] billion would M1 have been in 2012...

Suppose the economy is initially in equilibrium at an output level of 100 and a price level of 100. The Fed then manages to shift aggregate demand rightward by 20. Show what happens to output and prices if the aggregate supply curve is (i) horizontal, (ii...