Suppose that:

r = required reserve ratio = 0.100

c = {C/D} = currency ratio = 0.45

e = {ER/D} = excess reserve ratio = 0.05

MB = the monetary base = $5,000 billion

Given that the formula for the money multiplier is left parenthesis StartFraction 1 plus c Over r plus e plus c EndFraction right parenthesis 1+c r+e+c, find the value for M, the money supply.

The money supply is $---------billion. Round your response to the nearest whole number.)

Use the money multiplier to find the new value for the money supply if open market operations increase the monetary base by $100 billion. The money supply is now $--------billion