$[$Related to the Solved

Problem$]$

Consider the following$$ data:

Currency

$$$$470470$

billion

Checkable deposits$$

$$$$320320$

billion

Bank reserves

$$$$320320$

billion

Part $2$

a$.$ Calculate the values for the$$ currency$-$to$-$deposit ratio, the ratio of total reserves to$$ deposits, the monetary$$ base, the M$1$ money$$ multiplier, and the M$1$ money supply.

Part $3$

The$$ currency$-$to$-$deposit ratio is

enter your response here.

$($Enter

your response rounded to two decimal

places.$)$

Part $4$

The ratio of total reserves to deposits is

enter your response here.

$($Enter

your response as an

integer.$)$

Part $5$

The monetary base equals

$$$enter your response here

billion.

$($Enter

your response as an

integer.$)$

Part $6$

The M$1$ money multiplier is

enter your response here.

$($Enter

your response as an

integer.$)$

Part $7$

The M$1$ money supply is

$$$enter your response here

billion.

$($Enter

your response as an

integer.$)$

Part $8$

b$.$ Suppose that the ratio of total reserves to deposits changes from the value you calculated in part$($a$)$ to $2.($Assume that the$$ currency$-$to$-$deposit ratio remains the$$ same.$)$ Now what is the value of the money$$ multiplier?

The money multiplier is

enter your response here.

$($Enter

your response rounded to two decimal

places.$)$