Table 29-2The information in the following table pertains to the hypothetical economy of Florencial.Type of MoneyLarge time depositsSmall time depositsDemand depositsOther checkable depositsSavings depositsTraveler's checksMoney market mutual fundsCurrencyCredit card balancesMiscellaneous categories of M2Refer to Table 29-2. What is the M1 money supply in Florencial?a. $705 billionO b. $505 billionc. $585 billionOd. $570 billionAmount(Billions of dollars)120803005065520015030030

The money supply is the total amount of currency in circulation within an economy. It includes…

Answered: Refer to Table 29-2. What is the M1…

Refer to Table 29-2. What is the M1 money supply in Florencial? a. $705 billion b. $505 billion c. $585 billion d. $570 billion

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

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Question

Table 29-2
The information in the following table pertains to the hypothetical economy of Florencial.
Type of Money
Large time deposits
Small time deposits
Demand deposits
Other checkable deposits
Savings deposits
Traveler's checks
Money market mutual funds
Currency
Credit card balances
Miscellaneous categories of M2
Refer to Table 29-2. What is the M1 money supply in Florencial?
a. $705 billion
O b. $505 billion
c. $585 billion
Od. $570 billion
Amount
(Billions of dollars)
120
80
300
50
65
5
200
150
300
30

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B. Consider the following data Currency Checkable deposits Savings deposits $1,200 billion $1,500 billion $2,500 billion Banking system's reserve-to-deposit ratio is 30%. Calculate (show your werk) 1. Bank reserves = 2. Monetary base = 3. M1 money supply = %3D 4. Realistic money multiplier =
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