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a.) The money supply is $6000 000, currency held by the public is $2 000 000, and the reserve-deposit ratio is 0.25. Find deposits, bank reserves, the monetary base, and the money multiplier.

a.) The money supply is $6000 000, currency held by the public is $2 000 000, and the reserve-deposit ratio is 0.25. Find deposits, bank reserves, the monetary base, and the money multiplier.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Please answer fast please arjent help please answer following the a and b are required please answer fast

2. Answer the following: a. The money supply is $6000 000, currency held by the public is $2 000 000, and the reserve-deposit ratio is 0.25. Find deposits, bank reserves, the monetary base, and the money multiplier. b. In a different economy, vault cash is $1000000, deposits by depository institutions at the central bank are $4 000 000, the monetary base is $10000000, and bank deposits are $20000000. Find bank reserves, the money supply, and the money multiplier.
Transcribed Image Text:2. Answer the following: a. The money supply is $6000 000, currency held by the public is $2 000 000, and the reserve-deposit ratio is 0.25. Find deposits, bank reserves, the monetary base, and the money multiplier. b. In a different economy, vault cash is $1000000, deposits by depository institutions at the central bank are $4 000 000, the monetary base is $10000000, and bank deposits are $20000000. Find bank reserves, the money supply, and the money multiplier.
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