Answer to Question #90770 in Macroeconomics for Diana

Question #90770

Suppose the ECB makes an open market purchase of 15 bln euro in bonds. Assume the money multiplier is equal to 3. What is the change in the money supply?

Expert's answer

Change in money supply = change in reserve * multiplier = 3*15=45B Euros

Learn more about our help with Assignments: Macroeconomics

Comments

No comments. Be the first!

Leave a comment

Related Questions

1. Marginal propensity to save is 0.3. Calculate MPC and the expenditure multiplier.
2. Which factors are considered when deciding how to make goods & services?
3. Go to the FRED database and collect data on the three macroeconomic variables (i.e., GDP growth rate
4. Go to the FRED database and collect data on the three macroeconomic variables (i.e., GDP growth ra
5. Calculate the Corporate Income Tax, using the giving figures: Imports=1110.2 ; Government Purchases
6. The wholesale price of large shell eggs peaked at $2.49 a dozen on May 29, up from $1.20 a dozen at
7. Prove diagrammatically that a price floor reduces consumers surplus ? Please !