subject
Business, 06.04.2021 01:40 tkdurocher

Suppose we have an economy in which banks wish to hold no excess reserves, the required reserve ratio is .1, there is only one kind of deposit, and there is no cash drain. (a) The central bank needs to increase M1 by $100 billion. Explain how it can do this. (b) Suppose in addition to required reserves, the banks which like now to hold a very large amount of excess reserves as a ratio of deposits (say 25 to one). How will this affect your answer

ansver
Answers: 1

Another question on Business

question
Business, 21.06.2019 23:20
Which feature transfers a slide show into a word-processing document?
Answers: 2
question
Business, 22.06.2019 03:00
Which of the following is an effective strategy when interest rates are falling? a. use long-term loans to take advantage of current low rates. b. use short-term loans to take advantage of lower rates when you refinance a loan. c. deposit to a short-term savings instrumentals to take advantage of higher interest rates when they mature. d.select short-term savings instruments to lock in earnings at a current high rates.
Answers: 1
question
Business, 22.06.2019 04:10
You are head of the schwartz family endowment for the arts. you have decided to fund an arts school in the san francisco bay area in perpetuity. every 5 years, you will give the school $ 1 comma 000 comma 000. the first payment will occur 5 years from today. if the interest rate is 5.9 % per year, what is the present value of your gift?
Answers: 1
question
Business, 22.06.2019 08:00
Interest is credited to a fixed annuity no lower than the variable contract rate contract guaranteed rate current rate of inflation prime rate
Answers: 2
You know the right answer?
Suppose we have an economy in which banks wish to hold no excess reserves, the required reserve rati...
Questions
question
Computers and Technology, 09.12.2021 23:00
question
History, 09.12.2021 23:00
Questions on the website: 13722361