In Macroland there is $8,000,000 in currency. The public holds 60% of the currency and banks hold the rest as reserves. If banks' desired reserve/deposit ratio is 12.5 percent, deposits in Macroland equal and the money supply equals _.\a. $38,400,000; $41,600,000 b. $41,600,000; $ 41,600,000 c. $38,400,000; $ 46,400,000 d. $64,000,000; $ 64,000,000

Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
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In Macroland there is $8,000,000 in
currency. The public holds 60% of the
currency and banks hold the rest as
reserves. If banks' desired reserve/deposit
ratio is 12.5 percent, deposits in
Macroland equal
and the money
supply equals
_.\a. $38,400,000;
$41,600,000 b. $41,600,000; $
41,600,000 c. $38,400,000; $
46,400,000 d. $64,000,000; $
64,000,000
Transcribed Image Text:In Macroland there is $8,000,000 in currency. The public holds 60% of the currency and banks hold the rest as reserves. If banks' desired reserve/deposit ratio is 12.5 percent, deposits in Macroland equal and the money supply equals _.\a. $38,400,000; $41,600,000 b. $41,600,000; $ 41,600,000 c. $38,400,000; $ 46,400,000 d. $64,000,000; $ 64,000,000
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