Question: Suppose that av required reserve ratio = 0.10 c = {C/D) = currency ratio=0 25 e = {ER/D) = excess reserve ratio = 0.01 MB

Suppose that av required reserve ratio = 0.10 c = {C/D) = currency ratio=0 25 e = {ER/D) = excess reserve ratio = 0.01 MB = the monetary base = $1,000 billion 1+0 Given that the formula for the money multiplier is find the value for the money supply iteto The money supply is $ 1 billion (Round your response to the nearest whole number) Use the money multiplier to find the new value for the money supply if open market operations increase the monetary base by $100 billion The money supply is now s billion (Round your response to the nearest whole number) Enter your answer in each of the answer boxes

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