Consider the following data:

Currency$750 billion

Checkable deposits$500 billion

Bank reserves $500billion

a. Calculate the values for the currency-to-deposit ratio, the ratio of total reserves to deposits, the monetary base, the M1 money multiplier, and the M1 money supply.

The currency-to-deposit ratio is . (Enter your response rounded to two decimal places.)

The ratio of total reserves to deposits is . (Enter your response as an integer.)

The monetary base equals$ billion. (Enter your response as an integer.)

The M1 money multiplier is . (Enter your response as an integer.)

The M1 money supply is $ billion. (Enter your response as an integer.)

b. Suppose that the ratio of total reserves to deposits changes from the value you calculated in part (a) to 2. (Assume that the currency-to-deposit ratio remains the same.) Now what is the value of the money multiplier?

The money multiplier is . (Enter your response rounded to two decimal places.)