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PLESE PROVIDE A GOOD EXPLANATION THANK YOU! 1a. What kinds ofMonetary policy(easy or tight) should be exercised under the recessionary gap? Give examples of policy

PLESE PROVIDE A GOOD EXPLANATION THANK YOU!

1a. What kinds ofMonetary policy(easy or tight) should be exercised under the recessionary gap? Give examples of policy tools in terms ofRRR(Required Reserve Ratio), DR(Discount rate) and OMP(open market policy)

1b. Explainthe" MONEY MULTIPLIER" ofmoney creation including the formula and the process.

1c. Compare discount rate, federal fund rate, prime(lending) rate and deposit rate.

1d. Discuss the relationship between Bond price and interest rate.

1e. If RRR(Required Reserve Ratio) is larger, is the Money Multiplier bigger or smaller? why? explain based on the formula.

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