In the economy, the following statistics describe the money supply:CU = $1,500 billionRES= $200 billionDEP = $4,000 billionGiven these data, calculate the amount of the monetary base:BASE = $billionCalculate the quantity of the money supply:M = $billionCalculate the ratio of reserves to deposits:res= (Enter your answer rounded to the four decimal places.)Calculate the ratio of currency to deposits:cu = (Enter your answer rounded to the four decimal places.)Calculate the money multiplier:mm ==(Enter your answer rounded to the four decimal places.)Now, suppose the central bank engages in open market sales in the amount of $25 billion. Suppose that when this happens, both cu and res do not change. However,the bank's open-market sales will affect M, CU, RES, and DEP.Calculate the new value of the monetary base:BASE=$ billion Calculate the new value of the monetary base:BASE= $billionCalculate the new value of the money supply:M = $ billionVery challenging: Calculate the new amount of bank deposits:DEP = $ billionFind the new total amount of currency held by the non-bank public:CU = $ billionCalculate the new amount of bank reserves:RES = $ billion

a, calculate the amount of the monetary base: illion antity of the money supply: h io of reserves to deposits: or your answer rounded to the four decimal places.) io of currency to deposits: your answer rounded to the four decimal places.) oney multiplier: er your answer rounded to the four decimal places.)

a, calculate the amount of the monetary base: illion antity of the money supply: h io of reserves to deposits: or your answer rounded to the four decimal places.) io of currency to deposits: your answer rounded to the four decimal places.) oney multiplier: er your answer rounded to the four decimal places.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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