Homework Answers
Answer -
M1 supply = 50+1000+450
= $ 1500
M2 supply = M1 + 750
= 1500+750
= $ 2250
Total monetary base = M2 + Reserves with central bank
= 2250 + 100
= $ 2350
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Worked Problem (static) Question He Use the information given on the right to make the following...
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question 3 In June 2014, individuals and businesses held: • $50 billion in currency • $1,000...
question 3
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need all 5 answeres If the monetary base is $1,000 billion, checkable deposits are $2,000 billion,...
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question 3
In June 2014, individuals and businesses held: • $50 billion in currency • $1,000 billion in chequable deposits • $5,000 billion in non-chequable deposits • $750 billion in fixed term deposits and other deposits In June 2014, banks held: • $450 billion in currency • $100 billion in reserves at the central bank $800 billion in loans to households and businesses Use the information given on the right to make the following calculations. 1. Calculate the M1 and...
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