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# Economics -Money supply and Money multiplier equation

Can anyone help me with these problems??

Complete the following problems

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1. ; Calculate the money multipliers for the following reserve requirements when individuals hold no cash;

a. ; 5%

b. ; 10%

c. ; 20%

d. ; 25%

e. ; 50%

2. ; If the reserve requirement is 20% and individuals hold no cash, calculate the amount of government securities that the Fed would need to either buy or sell to increase the money supply by \$2 million, and indicate if they buy or sell.

3. ; Does the value of the dollar rise or fall for each of the following:

a. ; Fed makes substantial purchase of securities

b. ; Banks increase lending

4. ; If the money supply is \$500, the velocity is 8 and the price level is \$2, calculate:

a. ; The level of nominal output (GDP)

b. ; The quantity of production

c. ; If the money supply rises by 20%, calculate the new level of nominal output

d. ; If prices remained unchanged, calculate the new quantity of production.