Question: I need help wth ths please Question 4 The following information is given about the economy: 0 Individuals hold a total of 1,000 in deposits

I need help wth ths please

Question 4 The following information is given about the economy: 0 Individuals hold a total of 1,000 in deposits with banks 0 Banks hold 300 in reserves - Banks hold 200 in securities and 600 in loans o The required reserve ratio is 10% 0 Individuals hold 100 in currency and generally hold a constant fraction of deposits in currency a. Show the bank systems balance sheet! b. Calculate the economy's money multiplier m using all the information given above and the assump- tion that money is dened as M1. Suppose the central bank buys 100 in securities from the banking system. What is the immediate effect on the monetary base? What is the immediate effect on the quantity of money? Explain briey

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