Assume that the banking system has total reserves of $150 billion. Assume also that required reserves are 8 percent of checking deposits and that banks hold no excess reserves and households hold no currency. The money multiplier is . The money supply is billion. Suppose the Fed raises required reserves to 12.5 percent of deposits. The new money multiplier is , and the money supply to billion.

a.

b.

Explanation:

Given

Total Reserves = $150 billion

Required Reserves = 8%

Required

- Money Multiplier

- Money Supply

- Money Supply and Money Multiplier when Required Reserves is 12.5%

Money Multiplier is calculated as follows;

When required reserves = 8%

Convert percentage to fraction

Convert Divide to Multiplication

Money Supply is calculated as thus;

Calculating Money Supply and Money Multiplier when Required Reserves is 12.5%

Using the same formula used above

When required reserves = 12.5%

Convert percentage to fraction

Convert Divide to Multiplication

Money Supply is calculated as thus;

the first successful, urban blues recording, selling more than 75,000 copies, was made in year 1920.

mamie smith recorded the first commercially successful example of the urban blues,   with the recording of “crazy blues”."crazy blues" was recorded on august 10, 1920, in new york city. within a month of the release of “crazy blues” it had sold 75,000 copies.

answer; no individual buyer or seller has any significant impact on the market price;