Question: can you solve my homework ? _( Question# 1 (10 marks) Answer the following: a. MPC = .7.What is the government spending multiplier? b. MPC

can you solve my homework ?

_( Question# 1 (10 marks) Answer the following: a. MPC = .7.What is the government spending multiplier? b. MPC = .85.What is the tax multiplier? c. If the government spending multiplier is 5 , what is the tax multiplier? d. If the tax multiplier is -3, what is the government spending multiplier? e. If government purchases and taxes are increased by $150 billion simultaneously, what will the effect be on equilibrium output (income)? _( Question# 2 (10 marks) The account given below is for AlJubi bank. ASSETS LIABILITIES Reserves] 1; 500 $3,500 Deposits Loans 3,000 The required reserve ratio is 10 percent. a. How much is the bank required to hold as reserves given its deposits of $3,500? b. How much are its excess reserves? c. By how much can the bank increase its loans? (1. Suppose a depositor comes to the bank and withdraws $400 in cash. Show the bank's new balance sheet, assuming the bank obtains the cash by drawing down its reserves. Does the bank now hold excess reserves? Is it meeting the required reserve ratio? If not, what can it do

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