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6 Safari File Edit View History Bookmarks Window Help , TueApr18 6:29PM 0 i C E]: 0 eztomheducationcom C mikailyn- oo oo 00 911 I Search results... MALM 6-drawerdr... Q Amazon.com: Prim... m Let's get productiv... Homepage - PRIN," 0 Question 3 - Quiz... Quiz - Expansionary + Contractionary Monetary Policy 0 Saved Help Save & Exit Submit Instructions: Enter your answers as a whole number. 3 Solve the monetary policy solution for each of the following scenarios. a. Suppose there is a surge in consumer confidence, creating an increase in aggregate demand in the economy. The Federal Reserve estimates that a change in the money supply of $80 bil ion will adjust interest rates enough to offset the change in aggregate demand. If the reserve requirement is 10%, what action should the Fed take to reach the desired change in the money supply? The Fed should conduct an I (Click to select) : | of$ billion. b. Suppose there is a political crisis in Europe, causing a reduction in investment demand in the United States. To stimulate investment demand, the Federal Reserve decides the money supp y needs to change by $100 billion. lfthe reserve requirement is 16%, what action should the Fed take to reach the desired change in the money supply? The Fed should conduct an I (click to select) : | of$ billion. 'Qhgmi l1 A63
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