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Consider an economy, where the monetary base is 10 billion pesos. Banks keep 15% of deposits in reserve. Assume that 20% of the money supply

Consider an economy, where the monetary base is 10 billion pesos. Banks keep 15% of deposits in reserve. Assume that 20% of the money supply is in currency and the rest is in deposits.

(a) Find the money multiplier.

(b) Find the money supply.

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