Homework Answers
1 - Option B
Printing money
Selling bonds is a contractionary money policy , lowering taxes will increase the deficit. Raising taxes will decrease the income. Hence deficit financing and printing money is the method used.
2 - Option A
Council of economic advisors
There are three members in this commitee who are appinted by the president. Open market commitee and Federal reserve board are not reponsible for fiscal policies. Hence option A will be correct
3 - Option C
$ 2265 m
M2 = M1 + Saving deposits + bonds
= 1500+65+400+100+200
= $ 2265 million
4 - Option D
$ 15
M1 = Currency in circulation + checking deposits
= 5+10
= 15 million
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pls do 35-40
35. When moving $500 from your checking account to your savings account this transaction will impact the M1 and M2 money supplies by a. decreasing the M1 by $500. The M2 will be unchanged. b. decreasing the M1 by $500 and increasing the M2 by $500. c. not affecting the M1. But the M2 will increase by $500. d. not affecting the M1 and M2. Both will be unchanged. 36. The funds that banks are required by...
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1.
2.
3.
4.
5.
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