Liquidity Aggregates(in million pesos)Transferable and other deposits in foreign currency2,674,352.00Savings deposits4,376,259.00Small-time deposits2,794,328.00Demand deposits3,788,216.00Peso deposit substitutes540,731.00Currency1,281,527.00a. MIb. M2с. МЗd. M4Use the information below for Tasks 3 to 5.си %3D0.9,re = 0.1;H = 10,000,000Task 3. Solve for the money multiplier and money supply.Task 4. Solve for the impact on money supply when the reserve-ratio increases to 0.2.Task 5. Solve for the impact on the money multiplier when the currency-deposit ratio falls to 0.7.

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Task 3. Solve for the money multiplier and money supply. Task 4. Solve for the impact on money supply when the reserve-ratio increases to 0.2. Task 5. Solve for the impact on the money multiplier when the currency-deposit ratio falls to 0.7.

Task 3. Solve for the money multiplier and money supply. Task 4. Solve for the impact on money supply when the reserve-ratio increases to 0.2. Task 5. Solve for the impact on the money multiplier when the currency-deposit ratio falls to 0.7.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Liquidity Aggregates
(in million pesos)
Transferable and other deposits in foreign currency
2,674,352.00
Savings deposits
4,376,259.00
Small-time deposits
2,794,328.00
Demand deposits
3,788,216.00
Peso deposit substitutes
540,731.00
Currency
1,281,527.00
a. MI
b. M2
с. МЗ
d. M4
Use the information below for Tasks 3 to 5.
си %3D0.9,
re = 0.1;
H = 10,000,000
Task 3. Solve for the money multiplier and money supply.
Task 4. Solve for the impact on money supply when the reserve-ratio increases to 0.2.
Task 5. Solve for the impact on the money multiplier when the currency-deposit ratio falls to 0.7.

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