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Please help me with these two! 1. The Reserve requirement for the banking system is 20%. Currently PNC Bank has no excess reserves. Then M.

Please help me with these two!

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1. The Reserve requirement for the banking system is 20%. Currently PNC Bank has no excess reserves. Then M. Brathwaite (CEO of Swamp-Wear) deposits $2000 from a day's worth of shirt sales into his checking account at PNC bank. (A) Explain, without using a mathematical formula, why D. Kleinhen's deposit can lead to an increase in the money supply that is greater than $2000. (B) Discuss two limitations of this process Under the direction of FED Chair, C. Kane, the Federal Reserve Board of Governors determines that it is currently appropriate to follow a contractionary policy. 21. Use a correctly labeled aggregate demand and aggregate supply graph to illustrate the situation that would make this policy appropriate b. What specic action is the Fed likely to take in order to pursue this policy? c. Using a correctly labeled graph of the money market, show the effect of the central bank's action on the nominal interest rate. (1. Explain how the policy would affect each of the following: i. Real interest rates ii. Investment iii. Output (Y) iv. Price level (PL) v. Employment vi. Excess Bank Reserves

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