1. Assume that banks hold no excess reserves and that all currency is deposited into the banking system. If the required reserve ratio is 10.00%, and the Federal Reserve wants to increase the money supply by $35.00 million, the Fed would need to make an open market purchase of $million. 2. Assume that banks hold no excess reserves and that all currency is deposited into the banking system. If the required reserve ratio is 15.00%, and the Federal Reserve wants to decrease the money supply by $60.00 million, the Fed would need to make an open market sale of $million.
3. Suppose that banks decide to hold excess reserves. In order for the Federal Reserve to change the money supply by the same amounts as in parts 1 and 2, it would need to make:.
A. a larger open market purchase but a smaller open market sale.
B. a smaller open market purchase and a smaller open market sale.
C. a larger open market purchase and a larger open market sale.
D. a smaller open market purchase but a larger open market sale.

Your grandmother told you a dollar doesn't go as far as it used to. she says the purchasing power of a dollar is much lesser than it used to be. explain what she means. try and use and explain terms like inflation and deflation in your answer.

6. why the aggregate supply curve slopes upward in the short run in the short run, the quantity of output that firms supply can deviate from the natural level of output if the actual price level in the economy deviates from the expected price level. several theories explain how this might happen. for example, the misperceptions theory asserts that changes in the price level can temporarily mislead firms about what is happening to their output prices. consider a soybean farmer who expects a price level of 100 in the coming year. if the actual price level turns out to be 90, soybean prices will , and if the farmer mistakenly assumes that the price of soybeans declined relative to other prices of goods and services, she will respond by the quantity of soybeans supplied. if other producers in this economy mistake changes in the price level for changes in their relative prices, the unexpected decrease in the price level causes the quantity of output supplied to the natural level of output in the short run.

Question 1 2 points is the concern of business for the long-range welfare of both the company and its relationships to the society within which it operates