The Federal Reserve buys $100,000 in bonds from Fidelity, which then deposits the money in a checking account at Chase Morgan Bank (20 points) (a) As a result of the Federal Reserve's action, what is the change in the money supply if the required reserve ratio is 20 percent If the required reserve ratio is reduced to 10 percent, calculate the following (i) The maximum dollar amount this bank could lend from this deposit (ii) The total change in money supply from this deposit If the bank decides to keep an additional 10 of the deposit as excess reserves, now what will be the total money supply change (still using the 20 reserve requirement) (d) Assume that the Fed sold bonds to Fidelity instead of buying them Correctly labeled graph of the money market and show the effect of this open market operation on the money supply and nominal interest rate If a bank has $5 million in demand deposits, how much money can it lend if the required reserve ratio is (a) 3 percent (b) 8 percent 5 Below you will find a table of a bundle of outputs and prices of goods in the US 2021 Output 2021 Price Bread 800 $6 per loaf Gallons of Water 1700 $2 per gallon Vegetables 1000 $2 per piece (a) Calculate the nominal gross domestic product (GDP) for 2021 (b) Assume that in the US the GDP deflator (GDP price index) is 100 in the base year and 130 in 2021 Calculate each of the following (i) The inflation rate, expressed as a percentage, between the base year and this year (ii) 2021's real GDP 6 Suppose that nominal GDP in 2020 totals $8546 billion and rises to $12 1 trillion ten years later for the United States The GDP deflator for 2020 is 1 61 and for 2021 is 2 56 In what year is real GDP greater By how much How did you arrive at this conclusion (10 points) 7 Use the following table to answer the questions below concerning the United States' GDP 2015 is the base year Calculate each of the following (10 points) 2015 Quantity 2015 Price (base year) 2021 Quantity 2021 Price Coffee 30 $4 35 $7 Pizza 8 $5 7 $6 Entertainment 3 $4 8 $3 (i) The nominal gross domestic product (GDP) in 2015 and 2021 (ii) The real GDP in 2021 (d) If in 2015, the price index is 55 and in 2021, the price index is 60, what is the rate of inflation from 2015 to 2021

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. The Federal Reserve buys $100,000 in bonds from Fidelity, which then deposits the money in a checking account at Chase Morgan Bank. (20 points)

. The Federal Reserve buys $100,000 in bonds from Fidelity, which then deposits the money in a checking account at Chase Morgan Bank. (20 points)

(a) As a result of the Federal Reserve's action, what is the change in the money supply if the required reserve ratio is 20 percent?

If the required reserve ratio is reduced to 10 percent, calculate the following.

(i) The maximum dollar amount this bank could lend from this deposit

(ii) The total change in money supply from this deposit

If the bank decides to keep an additional 10% of the deposit as excess reserves, now what will be the total money supply change (still using the 20% reserve requirement)?

(d) Assume that the Fed sold bonds to Fidelity instead of buying them. Correctly labeled graph of the money market and show the effect of this open market operation on the money supply and nominal interest rate.

If a bank has $5 million in demand deposits, how much money can it lend if the required reserve ratio is:

(a) 3 percent?

(b) 8 percent?

5. Below you will find a table of a bundle of outputs and prices of goods in the US.

	2021 Output	2021 Price
Bread	800	$6 per loaf
Gallons of Water	1700	$2 per gallon
Vegetables	1000	$2 per piece

(a) Calculate the nominal gross domestic product (GDP) for 2021.

(b) Assume that in the US the GDP deflator (GDP price index) is 100 in the base year and 130 in 2021. Calculate each of the following:

(i) The inflation rate, expressed as a percentage, between the base year and this year

(ii) 2021's real GDP

6. Suppose that nominal GDP in 2020 totals $8546 billion and rises to $12.1 trillion ten years later for the United States. The GDP deflator for 2020 is 1.61 and for 2021 is 2.56. In what year is real GDP greater? By how much? How did you arrive at this conclusion?(10 points)

7. Use the following table to answer the questions below concerning the United States' GDP.2015 is the base year. Calculate each of the following: (10 points)