Business, 05.06.2021 08:00, DKLDDD1720

1 Assume the required reserve ratio is 10% and the Open Market Committee of the FED sells $200 billion in bonds to the public. Assuming banks give out as many loans as possible, what is the total change in the money supply? If the M1 was originally $8500 billion, what is the new M1 ( After the change)? You must show your work. 2. Assume the required reserve ratio is 20% and the Open Market Committee of the FED buys $300 billion in bonds from the public. Assuming banks give out as many loans as possible, what is the total change in the money supply? If the M1 was originally $7500 billion, what is the new M1 ( After the change)?You must show your work.

3. Assume the required reserve ratio is 12.5% and the Open Market Committee of the FED sells $250 billion in bonds to the public. Assuming banks give out as many loans as possible, what is the total change in the money supply? If the M1 was originally $9500 billion, what is the new M1 ( After the change)You must show your work.

4. Assume the required reserve ratio is 25% and the Open Market Committee of the FED buys $45 billion in bonds from the public. Assuming banks give out as many loans as possible, what is the total change in the money supply? If the M1 was originally $9500 billion, what is the new M1 ( After the change)?You must show your work.

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1 Assume the required reserve ratio is 10% and the Open Market Committee of the FED sells $200 billi...