Table 11.1 A Simplified Balance Sheet of a Private Bank AssetsLiabilities Loans $ 70 millionDeposits $ 100 million Government Bonds $ 20 million Reserves $ 10 million

Table 11.2 A Simplified Balance Sheet of the Federal Reserve AssetsLiabilities Government Bonds $ 750 billionCurrency in Circulation $ 700 billion Bank reserves $ 50 billion

Table 11.3 An Open Market Purchase of Government Bonds by the Fed (a) Change in the Fed Balance Sheet AssetsLiabilities Government Bonds + 11 millionBank reserves +$ 11 million (b) Change in ABCBank's Balance Sheet AssetsLiabilities Government Bonds  $ 11 million Reserves +$ 11 million

Table 11.4 A Loan by ABCBank Becomes a Deposit in XYZBank (a) Next Change in the ABCBank's Balance Sheet AssetsLiabilities Loans +$ 10 million Reserves  $ 10 million (b) Change in XYZBank's Balance Sheet AssetsLiabilities Reserves+$ 10 millionDeposits +$ 10 million

(a)(b) Figure 11.1 The Market for Federal Funds and an Open Market Purchase

Figure 11.2 Maintaining the Federal Funds Target Rate

Figure 11.3 The Federal Fund and Prime Rates,

Figure 11.4 The Intended Investment Schedule

Figure 11.5 An Increase in Investor Confidence

Figure 11.6 Expansionary Monetary Policy and the AD Curve

Figure 11.7 The Expansionary Monetary Policies of

Figure 11.8 Expansionary Monetary Policy in an Environment of Pessimism

(a) (b) Figure 11.9 The Market for Government Bonds

Figure The Federal Funds and 3-Month Treasury Bill Rates,

Figure The Demand and Supply of Money, with an Increase in Supply

Figure Federal Funds, Nominal and Real 30-Year Fixed Mortgage Rates,