Calculate the monetary base and the quantity of money. In the economy of Nocoin, banks have deposits
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In the economy of Nocoin, banks have deposits of $300 billion. Their reserves are $15 billion, two thirds of which is in deposits with the central bank. Households and firms hold $30 billion in bank notes. There are no coins!
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The monetary base is 45 billion The monetary base is t...View the full answer
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Related Book For
Macroeconomics Canada in the Global Environment
ISBN: 978-0321778109
8th edition
Authors: Michael Parkin, Robin Bade
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