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Supposethat: r= required reserve ratio= 0.15 c = {C/D} = currency ratio= 0.45 e = {ER/D} = excess reserves ratio= 0.03 t = {T/D}= time
Supposethat:
r= required reserve ratio= 0.15
c = {C/D}= currency ratio= 0.45
e= {ER/D}= excess reserves ratio= 0.03
t= {T/D}= time deposit ratio= 1
mm= {MM/D}= money market fund ratio= 0.50
MB= the monetary base= $3,000 billion
Given that the formula for the M2 money multiplier is m2=1+c+t+mmr+e+c, find the value for the M2 money supply.
The M2 money supply is $
nothing
billion. (Round your response to the nearest wholenumber.)
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