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Required reserve ratio, rrr = 0 . 1 0 Currency in circulation, C = $ 4 0 0 billionCheckable deposit, D = $ 8 0
Required reserve ratio, rrr Currency in circulation, C $ billionCheckable deposit, D $ billionExcess reserve, ER billionMoney supply, M $ billion Calculate the values for the currency ratio, c and the excess reserve ratio e Calculate the values for the money multiplier, m and provide in words its meaning? What is the effect of an increase in borrowed money, BR by billion on money supply? Suppose the central bank decides to issue a $ billion bond. Given this information, what is the effect on the money base level, MB
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