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Author Question: NIPA means A) New Income and Price Accounting. B) National Investment and Productivity Approach. ... (Read 53 times)

BrownTown3

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on: Jun 30, 2018
NIPA means
 
  A) New Income and Price Accounting.
  B) National Investment and Productivity Approach.
  C) Neutral Increase of Production Allocation.
  D) National Income and Product Accounts.

Question 2

Suppose the Fed makes a 5 million discount loan to a bank. Illustrate how this affects the balance sheets of the Fed and the banking system.
 
  What will be an ideal response?


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l.stuut

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Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

The Fed's assets increase as discount loans rise by 5 million and its liabilities increase by 5 million as reserves increase. The banking system's assets increase as reserves rise by 5 million and its liabilities increase by 5 million due to the increase in discount loans.


BrownTown3

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Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

TheDev123

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Reply 3 on: Yesterday
Wow, this really help

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