# Answer to Question #73328 in Macroeconomics for Remi Djimi

Question #73328

Part III: Diagram & Analysis

(f) Expansionary Monetary Policy: Suppose the money supply increased to M=P = 1840. Solve

for Y,i,C, and I, (repeat parts (a) through (e)) and describe in words the eects of an expansionary

monetary policy. Show the change on the diagram below. Label your diagram. Identify the old and

the new equilibrium.

(g) Expansionary Fiscal Policy: Suppose the money supply is at its initial value of 1600 but gov-

ernment increases its spending to G = 400. Solve for Y,i,C, and I, (repeat parts (a) through (e))

and describe in words the eects of an expansionary scal policy. Show the change on the diagram

below. Label your diagram. Identify the old and the new equilibrium.

(f) Expansionary Monetary Policy: Suppose the money supply increased to M=P = 1840. Solve

for Y,i,C, and I, (repeat parts (a) through (e)) and describe in words the eects of an expansionary

monetary policy. Show the change on the diagram below. Label your diagram. Identify the old and

the new equilibrium.

(g) Expansionary Fiscal Policy: Suppose the money supply is at its initial value of 1600 but gov-

ernment increases its spending to G = 400. Solve for Y,i,C, and I, (repeat parts (a) through (e))

and describe in words the eects of an expansionary scal policy. Show the change on the diagram

below. Label your diagram. Identify the old and the new equilibrium.

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