Chapter 17, Problem 24P

To determine

(a)

To explain:

The impact on money supply if there is an increase in the reserve requirementby Fed.

To determine

(b)

To explain:

The impact on money supply if an open market sale of government bonds is made by Fed.

To determine

(c)

To explain:

The impact on money supply if there is an increase in the discount rate by Fed.

To determine

(d)

To explain:

The impact on money supply if an open market sale of government bonds is made by Fedand also the Fed increases the discount rate.

To determine

(e)

To explain:

The impact on money supply if an open market purchase of government bonds is directed by Fed and Fed raises the reserve requirements.