Problem One: Use the partial balance sheet below for Magnetic Bank to answer the

Question

Problem One: Use the partial balance sheet below for Magnetic Bank to answer the next three questions Assume the Federal Reserve sets a reserve requirement of.1. Assets Liabilities Deposits 700,000 Reserves Bonds Loans $90,000 110,000 $500,000 How much is Magnetic Bank required to keep in reserves? How much can Magnetic Bank increase the money supply? Given the situation of Magnetic Bank, how much can the banking system increase the money supply? Problem Two: The News Article Reads.. First the good news: The economy grew at its fastest pace in six years and the unemployment rate reached a record low... What is the macroeconomic bad news? Below, draw an AD/AS graph positioning the curves so that they will match the description of an economy in the news article above. Label all the curves and the current short run equilibrium What discretionary monetary policy would you suggest to address the macroeconomic problems this economy is likely to face?

Explanation / Answer

12.85 percent if we have to rely on info given

7.78 multiplied by 700000=5447470. Note 7.48 is multiplier

The banking system can also increase it by same amount

Problem3 =The problems are unemployment, recession, low profits(only capitalists), poverty

The policy changes are increasing money supply, decreasing interest rate, decreasing taxes, increasing govt expenditure etc

Can answer only four questions according to chegg policy. Please send other parts as separate question. Please like answer

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