Suppose that:
r = required reserve ratio = 0.15
c = {C/D} = currency ratio = 0.45...
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Business, 24.04.2020 00:35 sanchezvianna55
Suppose that:
r = required reserve ratio = 0.15
c = {C/D} = currency ratio = 0.45
e = {ER/D} = excess reserve ratio = 0.05
MB = the monetary base = $3,000 billion
Given that the formula for the money multiplier is (1 + c)/(r + e + c), find the value for M, the money supply.
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Answers: 3
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