For the last time, consider an economy described by the following information:Demand deposits total $200,000Cash in bank vaults totals $50,000• The public holds cash of $36,000US government bonds held by banks total $6,000Banks' deposits in the Fed total $22,000Let's say that one bank in the economy has $60 in excess reserves and that there are enough banksin tesal for the full multiplied money creation process to take place. Calculate the amount (the actualamount, not the maximum) that the entire banking system -- all banks working together -- will createin new money, using these ER as your starting point. Carefully follow all numeric directions,including those related to rounding.

To calculate the actual amount: Money multiplier = 1/Reserve ratio To get the reserve…

For the last time, consider an economy described by the following information: Demand deposits total $200,000 • Cash in bank vaults totals $50,000 The public holds cash of $36,000 US government bonds held by banks total $6,000 Banks' deposits in the Fed total $22,000 Let's say that one bank in the economy has $60 in excess reserves and that there are enough banks in tosal for the full multiplied money creation process to take place. Calculate the amount (the actual amount, not the maximum) that the entire banking system -- all banks working together -- will create in new money, using these ER as your starting point. Carefully follow all numeric directions, including those related to rounding.

For the last time, consider an economy described by the following information: Demand deposits total $200,000 • Cash in bank vaults totals $50,000 The public holds cash of $36,000 US government bonds held by banks total $6,000 Banks' deposits in the Fed total $22,000 Let's say that one bank in the economy has $60 in excess reserves and that there are enough banks in tosal for the full multiplied money creation process to take place. Calculate the amount (the actual amount, not the maximum) that the entire banking system -- all banks working together -- will create in new money, using these ER as your starting point. Carefully follow all numeric directions, including those related to rounding.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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