1. What are the total loans off the people’s bank2. Computer money multiplier3. Suppose a depositor comes to the bank and withdraw $2000 in cash. How much money supply will be reduced in the economy? D7:47Essay Question 2:Refer to the information provided in Table 7 below toanswer the questions that follow.Reserves:Assets$50,000Required $40,000ExcessLoansTotalTable 7People's Bank$700,000Liabilities + Net Worth$400,000DepositsNet Worth$700,000Total

The following formula would be required in the question: Excess reserve = total reserve - required…

1. What are the total loans off the people’s bank 2. Computer money multiplier 3. Suppose a depositor comes to the bank and withdraw $2000 in cash. How much money supply will be reduced in the economy?

1. What are the total loans off the people’s bank 2. Computer money multiplier 3. Suppose a depositor comes to the bank and withdraw $2000 in cash. How much money supply will be reduced in the economy?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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