AB 204 Unit 7 Assignment Money , Banks and the Federal Reserve System
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as a whole . It is basically land with no structure for the work force . Currently the regime in charge has no order and this would explain why the development of this country has slowed if not stopped .
PART 2 : Loanable Funds Market
Examine each of the following scenarios in the market for loanable funds . Explain the impacts on private savings , private investment spending , and the rate of interest under each of the following events . Assume the economy is autarky ( closed ) and it does not have trade and capital transactions ( flows ) with foreign countries .
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AB 204 Unit 7 Assignment Money , Banks and the Federal Reserve System
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1 . This section deals with increase money supply given two scenarios ( see “ a ” and “ b ” below ).
In Westlandia , the public holds 50 % of money one ( M1 ) in the form of currency , and the required reserve ratio is 20 %.