Calculate the monetary base using the information provided on the right. In June 2014, individuals and businesses held: C• $50 billion in currency The monetary base is $ billion. D $1,000 billion in chequable deposits • 5,000 billion in non-chequable deposits • 5750 billion in fixed term deposits and other deposits In June 2014, banks held: • $450 billion in currency • 100 billion in reserves at the central bank • $800 billion in loans to households and businesses

Calculate the monetary base using the information provided on the right. In June 2014, individuals and businesses held: C• $50 billion in currency The monetary base is $ billion. D $1,000 billion in chequable deposits • 5,000 billion in non-chequable deposits • 5750 billion in fixed term deposits and other deposits In June 2014, banks held: • $450 billion in currency • 100 billion in reserves at the central bank • $800 billion in loans to households and businesses

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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