Suppose that the following set of equations describe ALL the relevant information about the US money market. Md =150−1000⋅r Total Reserves = Required Reserves = 5 Required Reserve Ratio = 0.1 = 10% Calculate the US Money Supply when money market is in equilibrium. 50 155 15 250 145   Calculate the rate of interest when money market is in equilibrium. 1.5% 3% 5% 15% 10%

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Suppose that the following set of equations describe ALL the relevant information about the US money market.

Md =150−1000⋅r

  • Total Reserves = Required Reserves = 5
  • Required Reserve Ratio = 0.1 = 10%

Calculate the US Money Supply when money market is in equilibrium.

50
155
15
250
145
 

Calculate the rate of interest when money market is in equilibrium.


1.5%
3%
5%
15%
10%
 
 
 
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