Macroeconomics math

a. Assume that the US population saves on average 5%. What is the US marginal propensity . Create a graph showing the shift in Sandra's demand curve based on your completed to consume? chart from question 10a. Calculate the potential boost to US consumer spending of the $1 million using the spending multiplier. c. What would be the new market demand curve based on your completed chart from . C. Assume that the Japanese population saves on average 10%. What is the Japanese question 10a? marginal propensity to consume? Price of one ice cream cone (P) Market Demand (Quantity d. Calculate the potential boost to Japanese consumer spending of the $1 million using the demanded, QD) $1.00 spending multiplier. $1.50 $3.00 $4.00 . Create a graph showing the shift in market demand curve based on your completed chart from question 10d. 11. Go back to the original demand curve that you wrote in question 8. Assume market supply is given by the following equation: Qs = 2P + 3 a, Calculate market equilibrium where Qs = Qp. What is the equilibrium price? b. What is the equilibrium quantity? RESERVE BANKING 12. Assume that the reserve ratio is 10%. How much money will be created in the economy from an injection of $1 million from the Federal reserve. 13. Now assume that the reserve ratio is 2%. How much money will be created in the economy from an injection of $1 million from the Federal reserve. FISCAL POLICY 14. The world is in a global recession. The governments of the US and Japan have decided to provide a tax stimulus package worth $1 million to their respective citizens. So, each citizen is paying less taxes and has a bigger budget as a result. Page 7 of 8 Page 8 of 8