Macroeconomics
5th Edition
ISBN: 9781319098759
Author: Paul Krugman, Robin Wells
Publisher: Worth Publishers
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Chapter 16, Problem 3P
To determine
Concept Introduction:
Budget Balance: The budget is considered to be balanced when the revenue collected from tax and the expenditures made by the government are equalized. When it is a deficit it is represented by a negative value, when it is a surplus it is represented by a positive value and in the case of a balanced budget, it is zero.
Monetary Base: It is defined as all those currency which are in circulation and are held by the public. It also includes deposits of commercial bank kept by the central bank.
Answers:
a. Change in monetary base.
Given,
Monetary base till May 2012 was $2,614.110 billion.
Monetary base till April 2012 was $2,590.146 billion.
According to the available data, the change in monetary base is $23.964 billion.
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