Homework 5 part 2

# Homework 5 part 2 - 16 On your graph in the graphing...

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16. On your graph in the graphing template, add the reserve supply associated with #15 above and label it R S B . Then label the intersection of the R d and R s as point B. Label the value for i ff and the value of the reserve supply on the horizontal axis. Feedback: See feedback for # 21 Table for Individual Question Feedback Points Earned: 3.0/3.0 Correct Answer(s): See feedback for # 21 17. Is this change in the R s due to open market purchases or sales? A) purchases B) sales Feedback: The FOMC will call (instruct) the FRB NY (the New York Fed) to increase reserve supply through open market purchases in order to lower the federal funds rate from 5.5% to 5.25%. Table for Individual Question Feedback Points Earned: 3.0/3.0 Correct Answer(s): A 18. What is the value of the Reserve Supply in October 1998? A) 375 B) 350 C) 425 D) 400 Feedback: R S = 900 - 100 (5.00) ..... R s = 400 POINT C

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Table for Individual Question Feedback Points Earned: 3.0/3.0 Correct Answer(s): D 19. On your graph in the graphing template, add the reserve supply associated with #18 above and label it R S C .
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