Answered: In Macroland there is $6,000,000 in…

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter13: The Federal Reserve System

Section: Chapter Questions

Problem 8WNG

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In Macroland there is $6,000,000 in currency. The public holds 60% of the currency and banks hold the rest as reserves. If banks' desired reserve/deposit ratio is 25.0 percent, deposits in Macroland equal and the money supply equals Multiple Choice $24,000,000; $24,000,000 $14,400,000; $16,800,000 $14,400,000; $20,400,000 $16,800,000; $16,800,000

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In Macroland there is $6,000,000 in currency. The public holds 60% of the currency and banks hold the rest as reserves. If banks' desired
reserve/deposit ratio is 25.0 percent, deposits in Macroland equal
and the money supply equals.
Multiple Choice
$24,000,000, $24,000,000
$14,400,000, $16,800,000
$14,400,000 $20,400,000
$16.800,000: $16.800.000

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