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the following questions are based on macroeconomics answer them to the best of your ability Include correctly labeled diagrams, if useful or required, in explaining

the following questions are based on macroeconomics answer them to the best of your ability

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Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly labeled diagram must have all axes and curves clearly labeled and must show directional changes. If the question prompts you to "Calculate," you must show how you arrived at your nal answer Canary Bank is a commercial bank in Econland with the following balance sheet (Taccount). Assets Liabilities Reserves $10,000 Demand Deposits $200,000 Government Bonds $300,000 Owners' Equity $110,000 (a) Calculate the required reserve ratio if Canary Bank holds no excess reserves. Show your work, (b) The central bank of Econland buys $50,000 of government bonds from Canary Banks What is the dollar value of the change in the monetary base? Explain using numbers (c) Based on your answer to part (a), calculate the maximum change in the money supply as a result of the central bank bond purchase after all adjustments take place in the banking system. Show your works (d) Given the change in the money supply in part (c), calculate the change in nominal gross domestic product if the velocity of money is 2' Show your work. (e) Assume the economy of Econland is initially at full employment Based solely on the change in the money supply in part (c), will real output increase, decrease, or stay the same in the long run? Explains

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