Calculating rates of money supply, inflation and velocity.

Between 1984 and 1985, the money supply in the United States increased to $641.0 billion from $570.3 billion, while that of Brazil increased to 106.1 billion cruzados from 24.4 billion. Over the same period, the U.S. consumer price index rose to 100 from a level of 96.6, while the corresponding index for Brazil rose to 100 from a level of only 31. Calculate the 1984-1985 rates of money supply growth and inflation for the United States and Brazil, respectively. Note that the monetary value of output in 1985 was $4010 billion in the United States and 1418 billion cruzados in Brazil. Calculate the velocity for the two countries in 1985. Why do you think the velocity was so much higher in Br... click for more

Comprehending why the United States asked Germany and Japan to adopt fiscal and monetary expansion in 1985.

After 1985 the United States asked Germany and Japan to adopt fiscal and monetary expansion as ways of increasing foreign demand for U.S. output and reducing the American current account deficit. Would fiscal expansion by Germany and Japan have accomplished these goals? What about monetary expansion? Would your answer change if you thought different German and Japanese policies might facilitate different U.S. policies.

How the 3 major tools of monetary policy can correct a recessionary gap and an inflationary gap.

How can the 3 major tools of monetary policy correct a recessionary gap and an inflationary gap?

IS-LM curve model

Please explain and describe graphically? In the IS-LM curve model, show how income and interest rate are affected by an increase in government spending.

Money supply, interest rates and income levels

Understanding the connections between the money supply, interest rates and income levels. If there is an increase in the money supply, explain why and how the changes in income and interest rates will occur.