ASSIGNMENT 08C11E MacroeconomicsDirections:

ASSIGNMENT 08C11E MacroeconomicsDirections: Be sure to save an electronic copy of your answer beforesubmitting it to Ashworth College for grading. Unless otherwise stated,answer in complete sentences, and be sure to use correct English, spellingand grammar. Sources must be cited in APA format. Your response should befour (4) double-spaced pages; refer to the “Assignment Format” page locatedon the Course Home page for specific format requirements.Part A1. Why is the money multiplier in the United States smaller than theinverse of the required reserve ratio? Provide one (1) reason.2. Explain why depositing cash into a checking account does not changethe money supply. Provide one (1) supporting fact.3. Explain why the money supply does not change when one individualwrites a check to another. Provide one (1) supporting fact.Part B1. Describe one (1) reason why the flexibility of wages and prices tend tofavor the Keynesian economic view in the short run and one (1) reasonwhy the flexibility of wages and prices tend to favor the classicaleconomic view in the long run.2. Refer the figure below and explain what happens in each graph (A, B,and C) when an economy is moving from a recession (point a) back tofull employment. Grading Rubric Please refer to the rubric below for the grading criteria for this assignment.


 

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