(Solved): he gropha below shows the lnfomation for the economy of Heart. enfect of the lower interest inte on ...

he gropha below shows the lnfomation for the economy of Heart. enfect of the lower interest inte on the level of invertment spending.MoMe:Toole/ ^(2)NMS2NownowibratGumbtit at rancyqquad -(p)(i)? -?qquad???Totata6?b. What is the new level of invertment apending? 5

C. Suppose thot for each Si change in investment aggregate demand changea by $4. Show the effect of this change in investment spencing in groph C. Note Pot only the endpoints of line

(1) c As AS Took

ole

below shows abbreviated balance sheets for the central bank in the country of Beckland and mmercial banking system. The target reserve ratio for the banks is 10 percent. (All figures are in billions of dollars.) a. Suppose that the Bank of Beckland buys

billion of government securities (

-bills) from the commercial banks. Show the immediate effects of this transaction on the balance sheets in column (1) of Tables A and B. b. What effect does this transaction have on the money supply of Beckland? Money supply

(Click to select) c. What effect does the transaction have on the banking system's reserves? Banks become

(Click to select) by $

| billion. d. If the banks were to fully loan-up, show the result in column (2) of the banking system's balance sheet. Note: To answer this question, complete the column (2) in the above table. Round your answers to the nearest whole number. e. By how much has money supply now changed? Note: Round your answers to the nearest whole number. Change in money supply +1 - of

billion.