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Business, 25.06.2019 11:30 talia43

Use the following table to answer the next question. the money supply and investment are in billions. money supply (billions of dollars), interest rate, investment (billions of dollars) (respectively listed): [$50 - 7% -$100], [60 - 6 - 110], [70 - 5 - 120], [80 - 4 -130], [90 - 3 -140]. assume that the mpc is 0.9 and the reserve requirement is 0.2. if the federal reserve needs to increase aggregate demand by $100 billion at each price level to move the economy back to full employment and the current interest rate is 6%, then the federal reserve should the money supply by (a) buy, $2 billion (b) sell, $4 billion (c) buy, $4 billion (d) sell, $2 billion

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