1. In Macroland there is $6,000,000 in currency, which is all held by the Bank of Mac as a reserve. The public does not hold any currency, and the bank's desired reserve/deposit ratio is 0.1.
    
2. 1) Show the balance sheet of the Bank of Mac when the central bank(Federal Reserve) sells $1,000,000 worth of government bonds to the Bank of Mac.
    
3. 2) Show the balance sheet of the Bank of Mac after the first round of lending.

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Answer rating: 100% (QA)

1 Sure lets take a look at the balance sheet of the Ban... View the full answer