For the next four questions, consider an economy described by the following information: Demand deposits...
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For the next four questions, consider an economy described by the following information: • Demand deposits total $100,000 • Cash in bank vaults totals $16,000 • The public holds cash of $24,000 • US government bonds held by banks total $8,000 • Banks' deposits in the Fed total $20,000 Calculate this economy's (economy-wide) currency ratio. Carefully follow all numeric directions. Enter your answer in decimal, not percent, format. In other words, if you get 0.99 (99 percent), enter only 0.99 in the blank. Calculate the naive multiplier for this economy. Carefully follow all numeric directions. Calculate this economy's real-world (money) multiplier. Carefully follow all numeric directions, including those related to rounding. Let's say that one bank in the economy has $200 in excess reserves and that there are enough banks in total for the full multiplied money creation process to take place. Calculate the amount (the actual amount, not the maximum) that the entire banking system -- all banks working together -- will create in new money, using these ER as your starting point. Carefully follow all numeric directions, including those related to rounding. For the next four questions, consider an economy described by the following information: • Demand deposits total $100,000 • Cash in bank vaults totals $16,000 • The public holds cash of $24,000 • US government bonds held by banks total $8,000 • Banks' deposits in the Fed total $20,000 Calculate this economy's (economy-wide) currency ratio. Carefully follow all numeric directions. Enter your answer in decimal, not percent, format. In other words, if you get 0.99 (99 percent), enter only 0.99 in the blank. Calculate the naive multiplier for this economy. Carefully follow all numeric directions. Calculate this economy's real-world (money) multiplier. Carefully follow all numeric directions, including those related to rounding. Let's say that one bank in the economy has $200 in excess reserves and that there are enough banks in total for the full multiplied money creation process to take place. Calculate the amount (the actual amount, not the maximum) that the entire banking system -- all banks working together -- will create in new money, using these ER as your starting point. Carefully follow all numeric directions, including those related to rounding.
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Related Book For
Macroeconomics
ISBN: 978-1464168505
5th Canadian Edition
Authors: N. Gregory Mankiw, William M. Scarth
Posted Date:
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