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Let m denote the money multiplier, rr the reserve-deposit ratio, and cr the currency deposit ratio. Furthermore, B is the monetary base, R is reserves,

  1. Let m denote the money multiplier, rr the reserve-deposit ratio, and cr the currency deposit ratio. Furthermore, B is the monetary base, R is reserves, M is money supply and C is currency held by the public.

a. Write down the equation for the money supply, as a function of the money multiplier.

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