The following graph shows the market for bank reserves in a hypothetical economy. Suppose the price level increases from 70 to 100. Shift the appropriate curve on the following graph to show the impact of an increase in the overall price level. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back o its original position, just drag it a little farther. ? INTEREST RATE (Percent) 5 N 0 0 Supply Demand 10 30 40 50 QUANTITY OF BANK RESERVES (Billions of dollars) Quantity of bank reserves supplied Quantity of investment demanded 60 Demand Supply Analyze the effects of this change in the price level, then fill in the following table with these results. Effect Increases Decreases

suppose the federal reserve needs to bring inflation under control and decides to raise the interest rate by 1 point. Use the graph below to decide on the appropriare course of action if the reserve requirement is 0% but banks like to hold 10% of deposits as reserves and the public likes to hold 3% of their money as cash

In early​ 2017, policymakers at the Federal Reserve forecast that real GDP during 2017 would increase faster than potential GDP and that the inflation rate for the year would be about 1.9 percent.   ​Source: Federal Open Market​ Committee, "Advance Release of Table 1 of the Summary of Economic Projections to be Released with the FOMC​ Minutes," March​15, 2017.   Fill in the missing values in the table with estimates that are consistent with these forecasts. Assume that the growth rate for real GDP between 2016 and 2017 is 0.32 percentage points higher than the percentage change in potential output between those years​ (rounded to two decimal​ places).     2016 2017 Real GDP ​$16.7 trillion ​$nothing trillion Potential GDP ​$16.9 trillion ​$17.1 trillion GDP Deflator 111.5 nothing   ​(Enter your responses rounded to one decimal​ place.)

Options are Increase/Decrease

The answer choices for the blanks are Blank 1: fall, remain the same, rise Blank 2: remain the same, rise, decline Blank 3: international trade, real balance, interest-rate

The SARB interest rate has been increasing since the beginning of this year. If the Monetary Policy Committee (MPC) decides to grow the economy. What impact does this have on the borrower, on wages and net exports? What is the overall effect on the economy? Use the relevant graphs.

Explain how increases in the real interest rate affect the quantity of real money balanced demanded. (Graphically illustrate)

please als do the graphs. thanksssssssss

← Consider the figure to the right. What are the three effects of decreases in the price level, and do these generate upward or downward movements along the economy's aggregate demand curve? The three effects of changes in the price level are A. the real-balance effect, the income effect, and the wealth effect. B. the substitution effect, the income effect, and the wealth effect. ⒸC. the real-balance effect, the interest rate effect, and the open economy effect. OD. the real-balance effect, the interest rate effect, and the wealth effect. When the price level falls, these three effects work together to generate downward movements along the economy's aggregate demand curve. 4 Price Level 120 115 110 16 17 18 Real GDP per Year (3 trillions) AD

Let's consider the effects of an introduction of the ATM machines (back in the 1980s). Imagine that the cost of going to the bank and exchange money for bonds or bonds for money is y cookies. Imagine also that the nominal interest rate is R, the price level is P and the REAL income that consumers will want to spend is y. Imagine that the entire yearly income is transferred to their bank accounts at the beginning of the year. Consumers consume continuously throughout the year. (a) What is the TOTAL cost of holding M dollars on average over the year? (Note: the total cost is the sum of the opportunity cost and the cost of going to the bank N times a year). (b) What is the relation between the number of trips to the bank, N, and the average money demand, M? (c) What is the optimal money demand? What are the factors that affect money demand? Explain each factor INTUITIVELY. (d) What is the effect of the introduction of the ATM machine on p? (e) What is the effect of the introduction of the…