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Suppose that: r = required reserve ratio = 0.15 c = {C/D) = currency ratio = 0.30 = {ER/D) = excess reserve ratio = 0.05

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Suppose that: r = required reserve ratio = 0.15 c = {C/D) = currency ratio = 0.30 = {ER/D) = excess reserve ratio = 0.05 MB = the monetary base = $3,000 billion + (****c.) Given that the formula for the money multiplier is find the value for M, the money supply. r+ e + c The money supply is $ 7,800 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 $300 billion. The money supply is now $ billion, (Round your response to the nearest whole number)

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