Still with the same data on Macroland, a closed economy with…
Still with the same data on Macroland, a closed economy with no government sector, and with fixed price level and interest rate. Fill-in the blank in the following table, then answer the following question. GDP Yd C Iplanned Iunplanned – 20 22 30 – 50 – 30 80 – – 30 100 – 70 30 The Macroland’s government reduced its taxes by 20, the income-expenditure equilibrium is expected to be:
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Suppose all money is held in the banking system, banks hold no excess reserves, and the Fed required reserve ratio is 10%. If the Fed makes an open-market purchase for $20 million worth of T-bills to this bank, the banking excess reserves will:
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