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3fullback · 2011-03-07 13:07:56

Any chances of a hand . 1. The required reserve ratio for banks is 2%. Bonds are priced at 10,000 Euro. The central bank wishes to increase the money supply by 1,000,000 euro. How many bonds should the Central Bank purchase? 2. C = 100 + .9GDP I = 200 G = 200 X = 100 M = .1GDP Full Employment GDP = 2500 Identify the…

07-03-2011 1:07pm

#1

3fullback

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Any chances of a hand .

1. The required reserve ratio for banks is 2%.
Bonds are priced at 10,000 Euro.
The central bank wishes to increase the money supply by 1,000,000 euro.
How many bonds should the Central Bank purchase?

2. C = 100 + .9GDP
I = 200
G = 200
X = 100
M = .1GDP
Full Employment GDP = 2500

Identify the problem in the above economy.
List the options for government action.
You have enough information to proceed with one of the options. What should you do.

0

Comments

#2 07-03-2011 1:22pm

andrew

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This isn't the place to come if you just want someone to do your homework for you. Exactly which parts of each question are you having a problem with? What solutions have you tried so far?

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#3 07-03-2011 4:10pm

3fullback

Registered Users, Registered Users 2 Posts: 825 ✭✭✭

Join Date: March 2009

Posts: 731

Just looking for a genius to do it out to compare to mine

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#4 07-03-2011 4:39pm

andrew

Moderators, Science, Health & Environment Moderators, Society & Culture Moderators Posts: 3,372 Mod ✭✭✭✭

Join Date: July 2003

Posts: 3262

Post your version here and it can be corrected. That way your mistake can be explained to you.

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