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Can you please help me with these questions. I will appreciate your help 8 Describe the Transmission Mechanism of Monetary Policy to control unemployment and

Can you please help me with these questions. I will appreciate your help

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8 Describe the Transmission Mechanism of Monetary Policy to control unemployment and recession. 5 marks 9 What is the difference between Contractionary Fiscal Policy and Expansionary Monetary Policy? Describe each with one example. 5 marks 10 Assume that Sheldon Glean deposits two million dollars in bank A and the desired reserve ratio is 5%. Summarize the expansion of the money supply by the banking system. Complete the following table to nd the maximum demand deposit creation by the banks. 10 marks Acquired cash reserves Desired reserves New money created (31".) and d-osits -- -_ -_- m = D = Desired reserves of other banks = Complete the following table to answer questions 11 to 14. Suppose that the MPS is constant at 0.8. An initial change in investment spending is $48000. 12 marks Investment spending Change in income Change in consumption Change in saving Initial increase 2nd round 3rd round All other rounds Total 11 The Multiplier is. 12 Change in saving in the 3rd round........... 13 Eventual increase in the income is....... 14 Change in consumption in 'All other rounds' is

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