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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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