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Question 1: Assume that:
Monetary Base ( MB) = $350 billion
Required Deposit Reserve Ratio (rD) = 10%
Excess Reserve Ratio (ER/D) = 5%
Currency Ratio (C/D) = 25%
Calculate the total money supply (M) from this information.
Monetary Base ( MB) = $350 billion
Required Deposit Reserve Ratio (rD) = 10%
Excess Reserve Ratio (ER/D) = 5%
Currency Ratio (C/D) = 25%
Calculate the total money supply (M) from this information.
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