AB 204 Course Great Wisdom / tutorialrank.com AB 204 Course Great Wisdom / tutorialrank.com | Page 9

as a whole. It is basically land with no structure for the work
force. Currently the regime in charge has no order and this
would explain why the development of this country has slowed
if not stopped.

PART 2: Loanable Funds Market

Examine each of the following scenarios in the market for
loanable funds. Explain the impacts on private savings, private
investment spending, and the rate of interest under each of the
following events. Assume the economy is autarky (closed) and it
does not have trade and capital transactions (flows) with foreign
countries.
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AB 204 Unit 7 Assignment Money, Banks and the Federal
Reserve System
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1. This section deals with increase money supply given two
scenarios (see “a” and “b” below).

In Westlandia, the public holds 50% of money one (M1) in the
form of currency, and the required reserve ratio is 20%.