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28) Assume that an economy, in which deposits issued by commercial banks are demand deposits, is characterized by the following information: Ratio of currency to

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28) Assume that an economy, in which deposits issued by commercial banks are demand deposits, is characterized by the following information: Ratio of currency to demand deposits: 0.20 Required reserve ratio (ratio of required reserves to demand deposits): 0.10 Excess reserve ratio (ratio of excess reserves to demand deposits): 0.05 Total monetary base: $100 billion Calculate the values of the M1 multiplier and of the total stock of M1

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