Question
In: Economics
Suppose that the required reserve ratio is 8%, currency in circulation is $600 billion, the amount...
Suppose that the required reserve ratio is 8%, currency in circulation is $600 billion, the amount of checkable deposits is $900 billion, and excess reserves are $12 billion.
The money supply is $ billion?
Solutions
Expert Solution
The money supply is equal to = Currency in circulation + checkable deposits.
money supply = 600 + 900
money supply = $1500 billion.
Rahul Sunny answered 1 year agoRelated Solutions
Suppose that the required reserve ratio is 8%, currency in circulation is $600 billion, the amount...
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MB
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m
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