Can anyone help me with 35-38 If Pete Peterson\'s salary increased from $8,000 t

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Can anyone help me with 35-38

If Pete Peterson's salary increased from $8,000 to $45,000 per year over the last twenty years while the relevant price index moved from 90 to 307, what was the percentage change in Pete's real income over that time period? 31) (a) (b) (e) (d) (e) 50.65% 64.90% 74.67% 113.13% 362.50% 32) The commercial banking system has $720 billion in demand deposit liabilities and S75 billion in reserves. The legal reserve ratio is 10%, what is the marinum expansion in the money supply that can take place? (a) $10 billion. (b) $20 billion. (c) $30 billion. (d) $40 billion () $75 billion (33) Throughout most of recorded history, money has served as a: (a) Medium of exchange. (b) Standard of value (c) Store of wealth Means of deferred payment. (d) (e) All of the above. (34) The commercial banking system has $700 billion in demand deposit liabilities and S70 billion in eserves. The legal reserve ratio is 10%. If the Fed (the US. central bank) buys $4 billion in U.S. government securities in the "open market," what is the maximum expansion in the money supply that can occur as a result? (a) $37 billion. (b) $40 billion. (c) $50 billion. (d) $60 billion (e) $0 billion.

Explanation / Answer

35) ans is D because change in Ms=multiplier*change in H=1/0.1*1=10 billion

36)ans is C. Purchasibg securities increases money supply

37)ans is D because change in money supply- change in H=money created by banks=110000-11000=99000

38)ans A. Expansionary fiscal policy will increase AD and try to recover ther rescession

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