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Help please? Answer all questions. Completely label all graphs 4. Indicate whether each of the following is part ofM1,M2, or neither: (10 points) a $95

Help please? Answer all questions. Completely label all graphs image text in transcribed
4. Indicate whether each of the following is part ofM1,M2, or neither: (10 points) a $95 on you campus meal card b. $.55 in the change cup of your car c. $1663 in your savings account d. $459 in your checking account e. 100 shares of stock worth $4,000 f A$1,000 line of credit on your Sears credit card 5. Suppose the T-account (abbreviated balance sheet) for First National Bank is as follows: (15 points) Assets Liabilities Actual Reserves $100,000 Demand Deposits $500,000 Loans $200,000 Bonds $200,000 At the outset assume that all banks other than First National Bank maintain zero excess reserves and the Reserve Requirement is 10%. Answer the following questions using the initial account balances on First National Bank's balance sheet. Do not cumulate your answers. Use a balance sheet CT account) to show how account balances would change in each of the following situations. Include required reserves and excess reserves in your balance sheets. a. How much in excess reserves does First National now hold? b. By how much would the money supply change if First National, like all other banks decides to maintain zero excess reserves by making new loans? e. Suppose the Fed purchases $50,000 of govemment bonds from First National Bank and First National maintains zero excess reserves By how much would the money supply change as a result of this bond purchase and change in First National's excess reserve policy? 6. Use the ADAs model to show and briefly explain how the following events would affect aggregate output, the rate of inflation and the unemployment rate in the short run. Assume the starting point in each situation is the economy producing at the potential level of real GDP and at the trend rate of inflation. (Use a separate graph for each event.) (10 points) a. There is a significant income tax cut for middle and lower income households. There is a significant increase in worker productivity d. There is a robust economic expansion in countries that buy goods from the U

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