Hello,

I have 2 requests.

First , can you answer this question with references ?

What is the difference between fiscal and monetary policy?Give examples of each.

Second, please help me answer the questions in the attached screenshots.

Check my work If the marginal propensity to save (MPS) is 0.10, 5 Instructions: Round your responses to two decimal places. points a. the marginal propensity to consume (MPC) is b. the multiplier is eBook Ask Print m References Mc Graw 2 5 Instructions: Round your response to two decimal places. pains Suppose consumers' disposable income increased by $525 billion and their spending increased by $283 billion. What was the MPC? MPC = EEDOK 'i'i References M: am. Check my work 4 Value 10 Total reserves: $109 billion points Transactions deposits: $1,000 billion Cash held by public: $500 billion Bonds held by public: $150 billion eBook Stocks held by public: $160 billion Gross domestic product: $8 trillion Interest rate: 5 pecent Ask Required reserve ratio: 0.10 Print n References a. How large is the money supply (M1)? billion b. How much excess reserves are there? billion Instructions: Round your response to two decimal places. c. What is the money multiplier? d. What is the available lending capacity of the banking system? billion Mc Graw Check my work 5 Assume that the following data describe the current condition of the commercial banking system: 10 Value points Total reserves: $90 billion Transactions deposits: $750 billion Cash held by public: $400 billion eBook Required reserve ratio: 0.10 Ask Print n References a. How large is the money supply (M1)? billion b. Are the banks fully utilizing their lending capacity? Banks currently have billion in excess reserves. Now assume that the public deposited another $40 billion in cash in transactions accounts. c. What would happen to the money supply initially (before any lending takes place)? Assuming the $40 billion in cash is not new money in the system, M1 will d. How much would the total lending capacity of the banking system be after this portfolio switch? illion e. How large would the money supply be if the banks fully utilized their lending capacity? billion f. What three steps could the Fed take to offset the potential growth in M1? reserve requirements the discount rate bonds McCheck my work 6 Suppose the Federal Reserve decided to sell $35 billion worth of government securities in the open market. 5 a. By how much will M1 change initially if the entire $35 billion is withdrawn from transactions accounts? points Note: If M1 decreases be sure to include a negative sign (-) in front of your answer. M1 will initially change by: billion eBook b. How will the lending capacity of the banking system be affected if the reserve requirement is 10 percent? Note: If lending capacity decreases be sure to include a negative sign (-) in front of your answer. Ask Total lending capacity will change by: billion c. How will banks induce investors to respond to this change in lending capacity? Print If the money supply increases, interest rates will and investors will want to borrow more funds. n If the money supply decreases, interest rates will and investors will want to borrow fewer funds. References McCheck my work 7 Policy Perspectives 5 points From the end of 2003 to the end of 2004, M1 increased from $1,344 billion to $1,372 billion. Instructions: Round your response to one decimal place. eBook a. By what percentage did M1 increase? b. If the Fed had used a fixed rule of 3 percent growth of the money supply, how large would M1 have been in 2004? billion Ask Print References McCheck my work 8 Refer to the News Wire to answer one question. 5 points NEWS WIRE FISCAL STIMULUS: GOVERNMENT SPENDING Senate Oks Obama Stimulus Package Washington, D.C.-The U.S. Congress gave final approval to President Obama's $787 billion stimulus package yesterday. The $787 billion package is intended to give a boost to the economy, lifting it out of the eBook current recession. At the heart of the package is a half-trillion increase in spending for infrastructure construction, high-speed rail projects, increased unemployment benefits, and scores of other government programs. The package will pump $185 billion into the economy this year and $399 billion next year. Democrats say the plan will save or create 3.5 million jobs. The Senate passed the measure by a vote of Ask 60-38 with the support of three Republicans. Earlier, the House passed the bill by a vote of 246-183 with no Republican support. Source: News accounts of February 13-15, 2009. Print If consumers had an MPC of 0.90, by how much would aggregate demand have eventually increased with Obama's spending stimulus, billion assuming the stimulus was entirely government spending? References Mc