(Answered) : Questions On The Subject Of Macroeconomics 1

Question Description

Please answer all of the following macroeconomics questions correctly and as briefly as possible.

Macroeconomics

• 1. What are the 3 characteristics of money? Give an example of each?.
• 2. How does the federal reserve create money?
• 3. Using simple money multiplier, what will happen to money supply if the reserve ratio 0.2 and Federal reserve gives a bank $100 in reserves?
• 4. Why is the financial sector important to economic activity?
• 5. Why is it important for the macroeconomy that the financial sector operates efficiently?
• 6. Why are not credit cards money? What is the difference between money and credit?
• 7. Demonstrate the effect of the
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