Hello there can someone please help me answer questions: 1,3,4, & 11 part 1 as well as 4,6 & 7 part 2

Part1:

1)Assume that the following asset values (in millions of dollars) exist in Ironmania: Federal Reserve Notes in circulation = $700;Money market mutual funds (MMMFs) held by individuals = $400;Corporate bonds = $300;Iron ore deposits = $50;Currency in commercial banks = $100;Savings deposits, including money market deposit accounts (MMDAs) = $140; Checkable deposits = $1,500;Small-denominated (less than $100,000) time deposits = $100;Coins in circulation = $40.

a.What is M1 in Ironmania?

b.What is M2 in Ironmania?

3) Suppose the price level and value of the U.S. dollar in year 1 are 1 and $1, respectively. If the price level rises to 1.25 in year 2, what is the new value of the dollar? If instead the price level falls to .50, what is the value of the dollar?

4) Suppose that Lady Gaga goes to Las Vegas to play poker and at the last minute her record company says it will reimburse her for 50 percent of any gambling losses she incurs. Will Lady Gaga probably wager more or less as a result of the reimbursement offer? Explain.

e e 9. The following balance shest is for Big Bucks Bank. The reserve ratio is 20 percent. (LOT) a. What is the maximum amount of new loans that Big Bucks Bank can make? Show in columns 1 and 1" how the bank's balance shest will appear atter the bank has loaned this additional amount. b. By how much has the supply of money changed? c. How will the bank's balance sheet appear after checks drawn for the entire amount of the new loans have been cleared against the bank? Show the new balance shest in columns 2 and 2 d. Answer questions a, b, and on the assumption that the reserve ratio is 15 percent. Assets Liahilities and net worth m @ ry (@) Reserves $22,000 Checkable 100,000 deposits Securities 38,000 Loans 40,000 10. Suppose the following simplified consolidated balance sheet is for the entire commercial banking system and that all figures are in billions of dollars. The reserve ratio is 25 percent. (LOT) a. What is the amount of excess reserves in this commercial banking system? What is the maximum amount the banking system might lend? Show in columns 1 and 1" how the consolidated balance sheet would lock after this amount has been loaned. What is the size of the monetary multiplier? b. Answer the questions in part a assuming the reserve ratio is 20 percent. What is the resulting difference in the amount that the commercial banking system can loan? Assets Liabilities and net worth (1) [0 Reserves $52 Checkable $200 deposits Securities 48 Loans 100 11. Ifthe required reserve ratio is 10 percent. what is the monetary multiplier? If the monetary multiplier is 4. what is the required reserve ratio? (LOT) beal What are the two parts of the Fed's dual mandate? Which of the two targets appears to be more variable? Explain your reasoning. (LO3) Suppose you are a member of the Board of Governors of the Federal Reserve System and the economy is experiencing a sharp and prolonged inflationary trend. What changes in (a) the reserve ratio, (b) the discount rate, (c) and open-market operations would you recommend, as well as on (d) the interest rate on excess reserves? Explain in each case how the change you advocate would affect commercial bank reserves, the money supply, interest rates, and aggregate demand. (LO3) What do economists mean when they say that monetary policy can exhibit cyclical asymmetry? How does the idea of a liquidity trap relate to cyclical asymmetry? Why is the possibility of a liquidity trap significant to policymakers? (LO4) How did the Fed use the main tools of monetary policy to respend to the financial crisis that began in 20077 What additional programs did the Fed create and implement? When was the Fed able to relax these policies? How did the Fed respond to the recession that began in 20207 (LO3) mama 124