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Starting from the concept of goods market equilibrium. . . i. describe the derivation of the IS curve. Keynes recogigg'ed that 1:: draw the MP
Starting from the concept of goods market equilibrium. . . i. describe the derivation of the IS curve. Keynes recogigg'ed that 1:: draw the MP curve and explain its shape. iv. derive the Aggregate Demand curve. Be sure to label all axes. v. if there were an \"autonomous" increase in consumption describe (or illustrate} what effect that would have on aggregate demand. vi. if monetaryir policy;r was tightened describe {or illustrate) what effect that would have on aggregate demand. Banking System Bank of Canada Assets Liabilities Assets Liabilities Securities Currency Securities Currency Reserves Deposits Loans to Reserves Banks Copy the information shown in the above balance sheets into your examination booklet and answer the following: i. What changes to any of the above entries would occur if the Bank of Canada were to BUY $100 million of securities from the banking system? 11. What changes to any of the above entries would occur if the Bank of Canada were to SELL $100 million of securities from the banking system? ili In the event that the Bank of Canada sells $100 million to the Banking System and all banks have a 20% desired reserve requirement what is the maximum amount that the system could increase lending by
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