Solved: How change in money supply impact ad and real gdp, Macroeconomics

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How change in money supply impact ad and real gdp

Question 1.The Federal Reserve purchases $100 million worth of government securities in the open market. If the required reserve ratio is .6, what is the maximum possible increase in the money supply?

Question 2. Please explain how the change in the money supply may impact AD and real GDP

Question 3. Suppose that the economic news is not good and businesses become pessimistic about the future. How would this change in attitude affect the investment demand curve and the impact on real GDP?

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Macroeconomics: How change in money supply impact ad and real gdp

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