This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: In the figure above, assume that output is 10.5 trillion, while potential output is 12 trillion. ... (Read 55 times)

audie

  • Hero Member
  • *****
  • Posts: 532
on: Jun 30, 2018
In the figure above, assume that output is 10.5 trillion, while potential output is 12 trillion. Suppose that a combination of fiscal stimulus and recovery of consumer and business confidence shifts the IS and AD curves, as shown in the figure.
 
  The equilibrium real interest rate is ________ percent. A) 3
  B) one
  C) 2.5
  D) 2
  E) zero

Question 2

If the Fed purchases 50,000 in T-bills from a bank, by how much will the bank's excess reserves increase?
 
  A) by 50,000
  B) by 50,000 times the required reserve ratio
  C) by 50,000 divided by the required reserve ratio
  D) Not enough information has been provided to answer the question.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

tashiedavis420

  • Sr. Member
  • ****
  • Posts: 329
Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

A


audie

  • Member
  • Posts: 532
Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review

T4T

  • Member
  • Posts: 348
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

In most cases, kidneys can recover from almost complete loss of function, such as in acute kidney (renal) failure.

Did you know?

The Centers for Disease Control and Prevention has released reports detailing the deaths of infants (younger than 1 year of age) who died after being given cold and cough medications. This underscores the importance of educating parents that children younger than 2 years of age should never be given over-the-counter cold and cough medications without consulting their physicians.

Did you know?

According to the Migraine Research Foundation, migraines are the third most prevalent illness in the world. Women are most affected (18%), followed by children of both sexes (10%), and men (6%).

Did you know?

Giardia is one of the most common intestinal parasites worldwide, and infects up to 20% of the world population, mostly in poorer countries with inadequate sanitation. Infections are most common in children, though chronic Giardia is more common in adults.

Did you know?

In the United States, there is a birth every 8 seconds, according to the U.S. Census Bureau's Population Clock.

Methods to Document Peripheral Pulses A. Stick Figure Peripheral Pulse Documentation B. Tabular Peri Methods to Document Peripheral Pulses A. Stick Figure Peripheral Pulse Documentation B. Tabular Peri
The illusory bands visible in this figure are often called Mach bands, although Mach used a ... The illusory bands visible in this figure are often called Mach bands, although Mach used a ...
Figure and Ground Figure and Ground
Factors that Increase Cardiac Output Factors that Increase Cardiac Output
The surface temperature of the star is 6000 K. At what wavelength is its light output a maximum The surface temperature of the star is 6000 K. At what wavelength is its light output a maximum
If the frequency equals 60 Hz in Figure 10-1, what is the value of capacitance? If the frequency equals 60 Hz in Figure 10-1, what is the value of capacitance?
Video: Erythropoietin (EPO)

For a complete list of videos, visit our video library