5 Students Hor X Fundamental x Fundamental x Question 5 - X 5 Question 5 - x C Home | Cheg x C | Chegg.com x C | Chegg.com x Course Hero X + C a ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmgh... [ * s Update Ch 14 Assignment i Saved Help Save & Exit Submit Check my work 5 NEWS WIRE: RESERVE REQUIREMENTS China Cuts Reserve Requirements 11.11 Beijing-China's central bank reduced the amount of reserves points commercial banks are required to hold, freeing up money for lending in the latest easing measure to shore up the world's Skipped second-largest economy . The People's Bank of China's percentage point cut in the reserve requirement lowers the reserve-requirement ratio, or RRR, to 11.5 percent for large banks. The move frees up eBook about US$79 billion in additional funds that banks can now lend. Print Source: News accounts of March 2020. References Instructions: Round your responses to one decimal place. What was the money multiplier in China a. before the change in reserve requirements? b. after the change in reserve requirements? Mc Graw Hill5 Students Hor X Fundamental x Fundamental x Question 6 - X 5 Question 5 - x C Home | Cheg x C | Chegg.com x C | Chegg.com x Course Hero X + C a ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmgh... ( * Is Update Ch 14 Assignment i Saved Help Save & Exit Submit Check my work 6 NEWS WIRE: RESERVE REQUIREMENTS China Cuts Reserve Requirements 11.11 Beijing-China's central bank reduced the amount of reserves points commercial banks are required to hold, freeing up money for lending in the latest easing measure to shore up the world's Skipped second-largest economy. The People's Bank of China's percentage point cut in the reserve requirement lowers the reserve-requirement ratio, or RRR, to 11.5 percent for large banks. The move frees up about US$79 eBook billion in additional funds that banks can now lend. Print Source: News accounts of March 2020. References Instructions: In part a, enter your response as a whole number. In part b, round your response to one decimal place. According to the News Wire, a. by how much did excess reserves in China increase? $1 billion b. by how much did the lending capacity of Chinese banks increase as a result? $ billion Mc Graw Hill5 Students Hor X Fundamental x Fundamental x Question 7 - X 5 Question 5 - x C Home | Cheg x C | Chegg.com x C | Chegg.com x Course Hero X + C a ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmgh... ( * I s Update Ch 14 Assignment i Saved Help Save & Exit Submit Check my work 7 Problem 14-07 algo 11.11 Refer to the News Wire to answer one question. points Skipped NEWS WIRE: DISCOUNT RATES Fed Cuts Key Interest Rate Again eBook Washington, DC-Alarmed by the rapidly weakening economy, the Federal Reserve cut a key interest rate again yesterday. The Fed cut the Print discount rate, dropping it from 2.75 percent at the beginning of the year to a mere 0.25 percent now. The discount rate is the rate the Fed References charges for loans it makes to private banks. By dropping the rate, the Fed is hoping banks will borrow more money, then use that money to make new loans to businesses and consumers. What has spooked the Fed is that GDP is falling at the fastest rate in 50 years. The Fed is hoping that record low interest rates will prompt more spending, preventing a protracted recession. Source: News accounts of March 2020. If every one-point change in the federal funds rate alters aggregate demand by $100 billion, how far would AD shift in response to the interest rate cuts? Instructions: Enter your response as a whole number. AD would shift to the (Click to select) |by $ billion. Mc Graw Hill5 Students Hor X Fundamental x Fundamental x Question 8 - X 5 Question 5 - x C Home | Cheg x C | Chegg.com x C | Chegg.com x Course Hero X + C a ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmgh... ( * I s Update Ch 14 Assignment i Saved Help Save & Exit Submit Check my work 8 Problem 14-08 algo 11.11 POLICY PERSPECTIVES From the end of 2003 to the end of 2004, M1 changed from $1,388 billion to $1,383 billion. points Instructions: Round your responses to one decimal place. If M1 decreased be sure to include a negative sign (-) in front of that Skipped number. a. By what percentage did M1 change? eBook Print % References b. If the Fed had used a fixed rule of 3 percent growth of the money supply (M1), how large would M1 have been in 2004? $ billion Mc Graw Hill5 Students Hor X Fundamental x Fundamental x Question 9 - X 5 Question 5 - x C Home | Cheg x C | Chegg.com x C | Chegg.com x Course Hero X + C a ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmgh... ( * s Update Ch 14 Assignment i Saved Help Save & Exit Submit Check my work C Problem 14-09 algo 11.12 POLICY PERSPECTIVES If the price level increases by 0.2 percent for every $100 billion increase in the money supply, by how much points might prices rise if the Fed increases total reserves by $200 billion and the reserve requirement is 0.10? Skipped Instructions: Round your response to two decimal places. 1% eBook Print References Mc Graw