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NEED ASAP WILL RATE HIGH EXPLAIN ALL STEPS PLEASE Consider an economy whose Monetary Base (B) is $7 billion and is unchanged through time. a.

NEED ASAP WILL RATE HIGH EXPLAIN ALL STEPS PLEASE

Consider an economy whose Monetary Base (B) is $7 billion and is unchanged through time.

a. Suppose at time t, rr is 1% and cr is 15%, find the money supply in the economy at time t.

b. Suppose at time t+1, rr changes to 3% and cr to 30%, find the money supply in the economy at time t+1.

c. Suppose at time t+2, rr further changes to 5% and cr changes to 40%, find the money supply in the economy at time t+2. d. Graph the time trend of rr, cr, B and M. Relate it to the Great Depression.

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