Suppose that: r = required reserve ratio = 0.10 c = {C/D} = currency ratio = 0.30 e = {ER/D} = excess reserve ratio = 0.03 MB = the monetary base = $3,000 billion 1+c Given that the formula for the money multiplier is find the value for M, the money supply. r+ e +c The money supply is $ billion. (Round your response to the nearest whole number.) Use the money multiplier to find the new value for the money supply if open market operations increase the monetary base by $100 billion. The money supply is now $ billion. (Round your response to the nearest whole number.)

Suppose that: r = required reserve ratio = 0.10 c = {C/D} = currency ratio = 0.30 e = {ER/D} = excess reserve ratio = 0.03 MB = the monetary base = $3,000 billion 1+c Given that the formula for the money multiplier is find the value for M, the money supply. r+ e +c The money supply is $ billion. (Round your response to the nearest whole number.) Use the money multiplier to find the new value for the money supply if open market operations increase the monetary base by $100 billion. The money supply is now $ billion. (Round your response to the nearest whole number.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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