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Refer to table below. Suppose that the Fed had decided to set the U.S. money supply in December 1932 and in December 1933 at the
Refer to table below. Suppose that the Fed had decided to set the U.S. money supply in December 1932 and in December 1933 at the same value as in December 1930. a, Assuming that the values of currency held by the public and the reserve-deposit ratio had remained as given in the table. what should the values of bank reserves be to reach the stated target for the U.S. money supply? Instruction: Enter all responses rounded to two decimal places. Currency held Reserve-deposit Actual Bank Honey Supply by public ratio reserves Needed Bank reserves December 1930 $ 44.1 billion $ 3.79 billion 9.082 $ 3.31 billion $ 3.31 billion December 1932 $ 44. 1 billion $ 4.82 billion 0.109 $ 3.18 billion billion December 1933 $ 44.1 billion $ 4.85 billion 0.133 $ 3.45 billion billion b. In order to accomplish this objective, the Fed would have had to conduct open market (Click to selecti to increase bank reserves by $ billion in 1932 and $ billion in 1934
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