1 - Has changed
The money supply has increased
2 - Has changed
The money supply will be out of circulation
3 - Has not changed
The supply has not changed yet. It depends upon what the second person will do with borrowed money
4 - Has changed
The money supply will increase
5 - Has changed
The money will be in circulation now and there will be injection.
lube Maps Translate News Quiz suved In which of the following circumstances has the money supply...
The total money supply M has two components: bank deposits D and cash holdings C which we assume to bear a constant ratio C/D money H is defined as the sum of cash holdings held by the public and the reserves held by the banks. Bank reserves are a fraction of bank deposits, determined by the reserve ratio r, 0 <r<1 c, 0 < c< 1. The high-powered (a) Express the money supply M as a function of high-powered money...
I am not sure how to answer question 1d and e as well as question 2 YesBank has the following items on its balance sheet 1. 150 75 100 250 100 50 25 25 45 loans to corporations loans to households YesBank's holdings of shares and bonds, etc retail current account deposits (deposits by general public with YesBank) commercial current account deposits (deposits by companies with YesBank) tangible assets and property cash in vaults reserve deposits with Bank of England...
3. An economy has the following money demand function: (M/P 2Y a. Derive an expression for the velocity of money. What does velocity depend on? Explain why this dependency may occur. b. Calculate velocity if the nominal interest rate i is 4 e. If output Y is 1,000 units and the money supply M d. Suppose the announcement of a new head of the percent. is $1,200, what is the price level P? central bank, with a reputation of being...
· Inflation (Mankiw Ch. 5 #3). An economy has the following money demand function: (M/Pd = .2Y/i1/2) a.) Derive an expression for the velocity of money. What does this velocity depend on? Explain why this dependency may occur. b.) Calculate the velocity if the nominal interest rate i is 4 percent. c.) Assume the nominal interest rate i is still 4 percent. If output Y is 1,000 units and the money supply M is $1,200, what is the price level...
15. Which of the following items is assets of a bank A. loans B. checking account deposits C, saving account deposits D. money borrowed from Federal Reserve 16. In an open economy, if a country has a trade surplus, which is NOT correct-? A. Exports > Imports. C. Saving > Investment D. Net capital outflow> 0 17. Inflation will be reflected as the directly proportional change of A. Total money supply increase B. Nominal wage growth, but not nominal interest...
The table below is the current balance sheet for the Maple Leafs Bank. Answer the following questions assuming that the bank’s target reserve ratio is 10%. Suppose that there are a total of 9 other banks in the economy and that the balance sheet for the whole banking system is presented in the table below. Assume that each of the other banks also has a target reserve ratio of 10%. I need help with the empty boxes in both questions....
50. Which of the following best illustrates the medium of exchange function of money? O A. You keep some money hidden in your shoe. OB. You keep track of the value of your assets in terms of currency. O c. You pay for your double latte using currency. OD. You lend $25 to your friend. 51. Which of the following lists ranks assets from most to least liquid? O A. currency, fine art, stocks B. currency, stocks, fine art c....