A. If the required reserve ratio is 15 percent, currency in circulation is $400 billion, checkable deposits
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Question:
A. If the required reserve ratio is 15 percent, currency in circulation is $400 billion, checkable deposits are $1000 billion, and excess reserves total $1 billion, then the M1 money multiplier is
B.Assume that the required reserve ratio, the currency to deposits , and the reserves to deposits remain constant, but there is a open market purchase of $1500 billion. Calculate the new monetary base.
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