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The accomoarrylng mole elves budget lronrhation for a Mwhmlcal economy. Assume mat all bud-om surpluses are used to pay down the public deal. The budget
The accomoarrylng mole elves budget lronrhation for a Mwhmlcal economy. Assume mat all bud-om surpluses are used to pay down the public deal. The budget den-o1 In year 3 Is 2lt' the MP5 in an economy is 0.25, govemment could shift the aggregate demand curve rightward by Still billion by increasing government spending by Hi) blion? increasing government spending by $3!) billion? Decreasing taxes by $20 billion? CIR increasing taxes by El] billion? 3-5uppose the ABC bank has excess reserves of $1,0- and checkable deposits of $311300. If the reserve requirement is 1!] percent, what is the size of the bank's actual reserves? 4-H the MPG in an economyr is 0.80, government could shift the aggregate demand curve leftward by 52!] billion by what? [ncreasing taxes by 5 billion? Reducing government expenditures by 1D billion? increasing taxes by 4- billion? DR reducing government expenditures by 20 billion
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