) Let CD = $1030b, c =0.94, TR = $120b a.) Calculate Cu, RR, ER, e and B.) Calculate m 1 and M 1 .) Let c rises to 0.98 ceteris paribus.) Calculate m...

1.) Let CD = $1030b, c =0.94, TR = $120b

      a.) Calculate Cu, RR, ER, e and B.

      b.) Calculate m1 and M1.

2.) Let c rises to 0.98 ceteris paribus.

      a.) Calculate m1' and M1'.

      b.) Draw inference on money supply.

3.) Let e rise to 0.0170, ceteris paribus.

      a.) Calculate m1" and M1".

      b.) Draw inference on money supply.

4.) Let Bnb = $990b

      a.) Calculate DL.

      b.) If the Fed buys T-securities in the amount of $60b, ceteris paribus, how much               will be the new monetary base?

      c.) Calculate new M1.

      d.) Draw inference on money supply.