a 1 If Anna deposits 500 cash in her checking account What is the immediate

A 1 if anna deposits 500 cash in her checking account

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(a)(1) If Anna deposits $500 cash in her checking account. What is the immediate change to M1 and M2 due to this transaction? (1) Jeff woke up in the morning, and transfer $300 from his savings account to his checking account. What is the immediate change to M1 and M2 due to this transaction? 3. (2pts) Use the money demand and money supply model to show graphically and explain the effect on interest rates of the Federal Reserve’s open market purchase of Treasury securities. Label the axes& curves and mark important points on the graph. An open market purchase of Treasury securities by the Federal Reserve increases the money supply from MS 1 to MS 2 , lowering the interest rate from i 1 to i 2 . 4. (3pts) Suppose that the central bank of Macroland set the required reserve ratio at 25%. Refer to the current balance sheet of the central bank to answer the following questions.
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