28 In the UK, the currency drain ratio is 0.38 of deposits and the reserve ratio is...

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28 In the UK, the currency drain ratio is 0.38 of deposits and the reserve ratio is 0.002. In Australia, the quantity of money is $150 billion, the currency drain ratio is 33 per cent of deposits and the reserve ratio is 8 per cent.

a Calculate the UK money multiplier.

b Calculate the monetary base in Australia.

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Economics

ISBN: 9781118150122

10th European Edition

Authors: Michael Parkin, Dr Melanie Powell, Prof Kent Matthews

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