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Table: Mexico's Central Bank Balance Sheet Simplified Central Bank Balance Sheet (millions of pesos) Assets Liabilities Reserves R 750 Money supply M 2,250 Foreign assets

Table: Mexico's Central Bank Balance Sheet

Simplified Central Bank Balance Sheet (millions of pesos)

Assets

Liabilities

Reserves R

750

Money supply M

2,250

Foreign assets (dollar reserves)

Currency in circulation

Domestic credit B

Domestic assets (peso bonds)

1,500

(Table: Mexico's Central Bank Balance Sheet)

If the country sells 100 million pesos of foreign assets and issues domestic credit worth 125 million pesos, then how much will be its money supply?

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