Business, 15.11.2019 06:31 renegade2020

Suppose that each 0.1 percentage point decrease in the equilibrium interest rate induces a $10 billion increase in real planned investment spending by businesses. in addition, the autonomous spending multiplier is 2 2 and the money multiplier is equal to 3 3. furthermore, every $20 billion increase in the money supply brings about a 0.1 percentage point reduction in the equilibrium interest rate. how much must real planned investment increase if the fed desires to bring about a $ 200 billion increase in real gdp? $ (round your answer to a whole number.)what dollar amount of open market operations must the fed undertake to bring about the money supply change necessary to bring about a $ 200 200 billion increase in real (round your answer to a whole number.)

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Suppose that each 0.1 percentage point decrease in the equilibrium interest rate induces a $10 billi...

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