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The economy of Sunderland contains 2,000 $1 bills. What is the quantity of money (Money Supply) in each of the following scenarios? Explain your answer.
The economy of Sunderland contains 2,000 $1 bills. What is the quantity of money (Money Supply) in each of the following scenarios? Explain your answer. A. If people hold all that money as currency. B. If people hold all money as demand deposits, and banks maintain 100 percent reserves. C. If people hold equal amounts of currency and demand deposits and banks maintain 100 percent reserves. D. If people hold all money as demand deposits and banks maintain a reserve ratio of 20% E. If people hold equal amount of currency and demand deposits and banks maintain a reserve ratio of 20%
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