HonieTimes New Roman12StylesEditingEditoasteParagraphE StylesEditooboardFont5.204.840.96163.84163.84163.846.163.8432.76131.07131.07131.077.131.0726.21104.85104.85104.858104.8520.9783.8883.8883.889.83.8816.7867.167.167.11067.113.4253.6853.6853.68Totals2231.54446.31785.221785.221785.22b. Calculate the new money supply.(Enter response here.)c. Calculate the money multiplıer.(Enter response here.)Fage 3 of 7D Focus尾1356 wordsmaiorindustries of PalamnósSomelof those corks likely ended in stonning bottiles fromithP Type here to searchOf2f5f64023%24& AutoSave Cff H 5-BU2C4_Uni.Sign inFileHomeInsertDesignLayoutReferencesMailingsReviewViewHelpv 12 v E E E EEATimes New RomanLdBIU x x A EEEEAa A A 2 TPasteStylesEditingEditorClipboard SFontParagraphE StylesEditor2. In the hypothetical country of Middlelandia, banks are required to hold 20% of checkabledeposits as reserves, and the public holds none of the loans as currency in circulation andredeposits all of the loans.a Complete the table (calculations should be to no more than two decimal places).None ofloanproceedsRequiredReservesLoanЕxcessNeware held asRoundDepositsproceedsredepositedReservesLoanscurrencyinof 20%circulationby people500-100 =%3|$500100400400400240080320320320332064256256256425651.2204.8204.80.204.8204.840.96163.84163.84163.84163.8432.76131.07131.07131.07131.0726.21104.85104.85104.85Page 3 of 71356 wordsOFocusmaior industries of Palamós (Some of those corks likely ended up stonnina bottles from the nearbE P Type here to search米2316.8.WRY%24123.

We use the following formulas to answer the question. Total money supply = Currency in circulation +…

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b. Calculate the new money supply. (Enter response here.) c. Calculate the money multiplier. (Enter response here.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

IS-LM-PC Analysis

The IS (Investment Saving), LM (Liquidity Preference- Money Supply), and PC (Philips Curve) is the model that looks at the dynamics of output and inflation. It takes into account the central bank policy decision to adjust the inflation and real interest rate in the economy. It enables the economist to weather to priorities between employment and inflation rate analyzing the model. It is a practice-driven approach adopted by economists worldwide.

IS-LM Analysis

The term IS stands for Investment, Savings, and LM stands for Liquidity Preference, Money Supply. Therefore, the term IS-LM model is known as Investment Savings – Liquidity preference money Supply. This model was introduced by a Keynesian macroeconomic theory which shows the relationship between the economic goods market and loanable funds market or money market. In other words, it shows how the market for real goods interacts with the financial markets to strike a balance between the interest rate and total output in the macroeconomy. This particular model is designed in the form of a graphical representation of the Keynesian economic theory principle. The output and money are the two important factors in an economy.

Question

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5.
204.8
40.96
163.84
163.84
163.84
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32.76
131.07
131.07
131.07
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67.1
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53.68
53.68
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446.3
1785.22
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b. Calculate the new money supply.
(Enter response here.)
c. Calculate the money multiplıer.
(Enter response here.)
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Aa A A 2 T
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2. In the hypothetical country of Middlelandia, banks are required to hold 20% of checkable
deposits as reserves, and the public holds none of the loans as currency in circulation and
redeposits all of the loans.
a Complete the table (calculations should be to no more than two decimal places).
None of
loan
proceeds
Required
Reserves
Loan
Еxcess
New
are held as
Round
Deposits
proceeds
redeposited
Reserves
Loans
currency
in
of 20%
circulation
by people
500-100 =
%3|
$500
100
400
400
400
2
400
80
320
320
320
3
320
64
256
256
256
4
256
51.2
204.8
204.8
0.
204.8
204.8
40.96
163.84
163.84
163.84
163.84
32.76
131.07
131.07
131.07
131.07
26.21
104.85
104.85
104.85
Page 3 of 7
1356 words
OFocus
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E P Type here to search
米
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6.
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3.

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