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Question: suppose that the economy is shown to the right this...

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Suppose that the economy is shown to the right. This economy is currently experiencing O A. a recessionary gap. O B. an inflationary gap. O C. deflation. LRAS SRAS O D. crowding out Using the line drawing tool, draw and label the fiscal policy correction that would bring the economy to full employment GDP Properly label this line. Carefully follow the instructions above, and only draw the required objects AD 2 4 6810 12 14 16 18 20 Real GDP (S trillions)
Consider a world in which there is no currency and depository institutions issue only transactions deposits and desire to hold no excess reserves. The required reserve ratio is 15 percent. The central bank sells $1.01 billion in government securities This results in V the money supply of Sbillion. (Enter your response rounded to two decimal places)
Suppose that the total liblities of a depository institution are transactions deposits equal to $3 billion. it has $2.25 billion in loans and securities, and the required reserve ratio is 15 percent Calculate this institutions excess reserves. S millions.
Assume that the required reserve ratio is 8 percent. What is the total possible expansion of the money supply after a $2 5 million bond purchase by Fed? s(Round your answer to the nearest dollar,) the
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