answer as the correct sign (+ or -), the $ sign and your number, expressed to one decimal place.[No commas - hint: there is no answer greater than +$999.9, nor less than -$999.9.]All answers are in billions of dollars so there is no need to write that out.

Examples of acceptable answers:+$45.6+$333.0-$72.7

Examples of unacceptable answers:+45.6$333 -$72.7 billion

For the following five questions, assume the following characteristics of the monetary transmission mechanism:

The money multiplier is 3.25

Interest rates will change by 2.5% for every $45 billion change in the money supply.

Investment will change by $76 billion for every 1.5% change in the interest rate.

Income will change by $14.3 billion for every $5.7 billion change in investment.

Identify the change in income when the Fed does the following:

1.Buys $35 billion in bonds.

2.Buys $18 billion in bonds.

3.Buys $4 billion in bonds.

4.Sells $12 billion in bonds.

5.Sells $22 billion in bonds.