Problem One: Use the partial balance sheet below for Magnetic Bank to answer the

Question

Problem One: Use the partial balance sheet below for Magnetic Bank to answer the next three questions. Assume the Federal Reserve sets a reserve requirement of.1. Assets Liabilities Deposits 900,000 Reserves Bonds Loans $150,000 150,000 $600,000 How much is Magnetic Bank required to keep in reserves? How much can Magnetic Bank increase the money supphy? Given the situation of Magnetic Bank, how much can the banking system increase the money supply? Problem Two: The News Article Reads.... First the good news: The economy grew at its fastest pace in six years and the unemployment rate reached a record low... What is the macroeconomic bad news? Below, draw an AD/AS graph positioning the curves so that they will match the description of an economy in the news article above. Label all the curves and the current short run equilibrium. What discretionary monetary policy would you suggest to address the macroeconomic problems this economy is likely to face?

Explanation / Answer

30%

3.33(multiplier) multiplied by 500000=1666666

Same answer I. e 1666666

problem three

Unemployment, poverty, recession, falling profits, falling prices etc will be of concern to voters

The policy change is increasing money supply, decreasing interest rates, increasing govt expenditure, decreasing taxes, promoting exports etc

Can answer only 4 parts according to chegg policy. Please like answer

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