Describe and explain what happens to the monetary base, the money multiplier (mm2) and the m2 money supply under each of the following cases: a. the people’s bank of china increases the required reserve ratio on bank deposits. b. the federal reserve bank purchases bonds in the open market. c. the bank of england lowers the bank of england’s discount rate. d. the central bank of russia sells dollars to defend the ruble. e. the federal reserve bank decides to pay interest on banks’ excess reserves held at the fed.

answer; institution based;

answer; someone must cover the cost associated with the provision of scarce goods in both sectors;

answer; proclamation of 1763;

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.