Chapter 16:Reserves = $1,500First national bankLoaned = $8,500Chapter 17:Deposits = $10,000Money Created = Amount x MM1. If the bank has to maintain a required reeserve ratio of 10% then what is the excess reserve if any?1/P2. If the reserve ratio is 10% then what will be money multiplier3. How much extra money the bank will be able to create with an addtionalMS3/4#1/20Total Reserve = Required Reserve + Excess ReserveMoney Multiplier = 1/RWhere R is Reserve RatioMD1. What is the price level at the equilibirum?2. What is the value of money at the equilibirum?3. If the velocity is 4, money supply is 100, price level is 10 then whatwill be the output?MXV=PXYP= Price levelValue of Money = 1/P

Reserves are the part of deposits that is kept out from the deposits by the bank. Excess reserve =…

Reserves = First national bank $1,500 Loaned = $8,500 Deposits $10,000 Total Reserve = Required Reserve + Excess Reserve Money Multiplier = 1/R Where R is Reserve Ratio Money Created = Amount x MM 1. If the bank has to maintain a required reeserve ratio of 10% then what is the excess reserve if any? 2. If the reserve ratio is 10% then what will be money multiplier 3. How much extra money the bank will be able to create with an addtional

Reserves = First national bank $1,500 Loaned = $8,500 Deposits $10,000 Total Reserve = Required Reserve + Excess Reserve Money Multiplier = 1/R Where R is Reserve Ratio Money Created = Amount x MM 1. If the bank has to maintain a required reeserve ratio of 10% then what is the excess reserve if any? 2. If the reserve ratio is 10% then what will be money multiplier 3. How much extra money the bank will be able to create with an addtional

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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I'd like help on b,c,d