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(Solved) (3) Based on the increase in money supply you identified from the T-account of the entire commercial banking system above, fill in the blanks in the...


(3) Based on the increase in money supply you identified from the T-account of the entire commercial banking system above, fill in the blanks in the Liquidity Preference Model below. To calculate the amount of money supply, assume that there is no currency in circulation and all deposits in the T-account above are checkable bank deposits. 1' (%) MSO MS1 12 M $ 150,000 ( ) (4) The table below shows the investment projects available to this economy. From the table, we can infer that the amount of planned investments will increase from $ ( ) just before the open market purchase of the Federal Reserve to $ ( ) after the open market purchase subsequently leads to an infinite round of loan-deposit process. Fill in the blanks above. Investment Project A B C D E F G Expected Revenue ($) 11,000 21,000 32,000 10,450 20,300 31,500 10,550 Expected Cost ($) 10,000 20,000 30,000 10,000 20,000 30,000 10,000
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