In the economy of Nocoin, bank deposits are $300 billion, bank reserves are $15 billion of which
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In the economy of Nocoin, bank deposits are $300 billion, bank reserves are $15 billion of which two thirds are deposits with the central bank. Households and firms hold $30 billion in bank notes. There are no coins. Calculate.
a. The monetary base and the quantity of money.
b. The banks’ desired reserve ratio and the currency drain ratio (as percentages).
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a The monetary base is 45 billion The monetary base is the sum of notes coins and depository institu...View the full answer
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Related Book For 
Macroeconomics Canada In The Global Environment
ISBN: 9780321931207
9th Edition
Authors: Michael Parkin, Robin Bade
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