Macroeconomics homework questions

Posted on 2014-03-25 11:57:00 in Economics by BRIAN

Briefly describe each of the following instruments, and its potential impact on M0, M1 and r and AD:

1. Reserve Requirements (4P)

2. Discount Rate (4P)

3. Open Market Operation (4P)

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For this question, I can do the description part, but if anyone can help towards the impact on M0, M1 and r and AD,

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(9p) Identify the three main ways in which a Fiscal Expansion could be financed, and the corresponding complication with each option.

(4P) Assuming the Keynessian View, Identify the total multiplier effect of a fiscal expansion (G) on Price Level and Output (Up, Down or no effect)

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If anyone can help towards any one of these questions I would really appreciate it. I have had a troublesome finals week (I go to school on trimesters) and these are the questions I'm having trouble with going into the final.

Thank you in advance and I will gladly award you with best answer points.

Cheers!

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