Question: Assume that the monetary base (B) is $200 billion, the reserve-deposit ratio (rr) is 0.2 and the currency-deposit ratio (cr) is 0.1. a)What is the

Assume that the monetary base (B) is $200 billion, the reserve-deposit ratio (rr) is 0.2 and the currency-deposit ratio (cr) is 0.1.

a)What is the money supply?

b)If rr=0.3 whilecr and B remain the same what is the money supply?

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