If deposits in the banking system are $540, while the reserve ratio is 0.2 and the currency to deposit ratio is 0.09, then:

1) Calculate the total demand for high powered money.

(show step by step solution)

2) Is keynesian or classical better? Show one real-world example of the model being applied

2b) What differences emerge between Keynesian and Classical economists regarding understanding about the business cycle and how the economy should best be managed?

Changes in macroeconomic indicators can often be of relevance to business and influence decision-making concerning a range of issues related to things like profit forecasts, expected sales growth, expansion plans, etc.

Assume you are employed as a business analyst with a large Singaporean based multinational corporation that manufactures electronic products. Identify and discuss how each of the following macroeconomic issues may be relevant to the firm:

a) A major export market where electronic goods are sold experiences accelerating inflation.

b) Intellectual property (IP) protections are abolished.