If the initial cash in the US economy is $1 Trillion, individuals tend to keep onesixth of their income as cash and deposit the rest, and banks can lend 90 percent of the deposit and reserve the remaining, then: a) What is the total money supply (M1) in this economy? (5 points) b) If the Federal Reserve wants to expand the money supply by five percent (because of the current crisis), what types of policies can she use, and how? Explain and support your claim using computation if it is required. (10 points) c) Let’s say, after implementing these policies, the economy only increased by two percent, explain why this happened. (5 points) d) Now the government wants to stimulate the economy by ten more percent after the failure of the previous attempt by the Fed (the size of the economy is $20 trillion, and it is predicted that it will be contracted by at least $2 trillion by the end of this year), what can she do? Explain the possible policies that the Gov can implement in detail, and use computation if necessary. (10 points)

2. the external environment (connect)choose whether each example belongs in the general, task, or internal environment.exampleenvironmenta worldwide recession task environment / general environment / internal environmentlocal mothers asking their community grocery store to carry no-salt cheerios-type cereal for their babies task environment / general environment / internal environmentchoose the phrase that best completes the following sentence.the relationship between the task environment and the general environment is best described as: a one-way system: changes in the task environment affect the general environment, but changes in the general environment do not affect the task environment.an open system: changes in the task environment affect the general environment, and changes in the general environment affect the task environment.a one-way system: changes in the general environment affect the task environment, but changes in the task environment do not affect the general environment.a closed system: changes in the general environment do not affect the task environment, and changes in the task environment do not affect the general environment.©bloomberg via getty imagesmanagement in the newsin april 2010, the explosion of british petroleum’s (bp) deepwater horizon oil drilling rig and the accompanying oil spill dramatically changed the external environment in which all oil companies operate. the explosion released more oil than any other accidental spill in history and had a huge impact on the waters and surrounding communities of the gulf coast. the conditions that led to the spill, the attempts to stop the spill, and the clean-up and aftermath of the spill prompted debates in the u.s. senate, concern on wall street, and attention from companies all over the world.match each oil spill event with a specific dimension of the general environment.eventgeneral environment dimensionbp stock prices falling 25% during the first month after the oil spill oil seeping into pelican nesting grounds, which will place the brown pelican back on the endangered species list people moving from louisiana to oklahoma to avoid the effects of the spill