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Macro Economics

Forums › Technical Problems › Macro Economics

  • This topic has 2 replies, 2 voices, and was last updated 5 months ago by John Moffat.
Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • September 26, 2020 at 1:28 pm #586767
    rabtawithhamza
    • Topics: 1
    • Replies: 1
    • ☆

    If the money supply is: The interest rate is:

    • $100 billion10%

    120 billion 8%

    140 billion 6%

    160 billion 4%

    120 billion 2%

    If the interest rate is: Investment spending is:

    10%$10 billion

    8%20 billion

    6%30 billion

    4%40 billion

    2%50 billion

    Assume that equilibrium GDP is $400 billion, potential GDP is $500 billion, the marginal propensity to consume is 9/10, the interest rate is 8%, investment spending is $20 billion, the money supply is $120 billion, and the reserve requirement is 1/10. By how much and in what direction should the Fed change the monetary base?

    Explain it with formula.

    September 26, 2020 at 1:28 pm #586768
    rabtawithhamza
    • Topics: 1
    • Replies: 1
    • ☆

    Can anyone help me to resolve this problem..

    September 26, 2020 at 3:18 pm #586783
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 42770
    • ☆☆☆☆☆

    This forum is for technical problems with the website.

    Please ask in the relevant forum for whichever ACCA or CIMA exams you are studying for.

  • Author
    Posts
Viewing 3 posts - 1 through 3 (of 3 total)
  • The topic ‘Macro Economics’ is closed to new replies.

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