Question: [Related to the Solved Problem ] Consider the following data: Currency $760 billion Checkable deposits $610 billion Bank reserves $610 billion a. Calculate the values

[Related to the Solved

Problem]

Consider the following data:

Currency	$760 billion
Checkable deposits	$610 billion
Bank reserves	$610 billion

a. Calculate the values for the currency-to-deposit ratio, the ratio of total reserves to deposits, the monetary base, the M1 money multiplier, and the M1 money supply.

The currency-to-deposit ratio is

(Enter

your response rounded to two decimal

places.)

The ratio of total reserves to deposits is

(Enter

your response as an

integer.)

The monetary base equals

billion.

(Enter

your response as an

integer.)

The M1 money multiplier is

(Enter

your response as an

integer.)

The M1 money supply is

billion.

(Enter

your response as an

integer.)

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 thesame.) Now what is the value of the money multiplier?

The money multiplier is

(Enter

your response rounded to two decimal

places.)

Enter your answer in each of the answer boxes.

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