Suppose the monetary base is 2000 dollars, currency held by the public is 600 dollars, bank excess
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Question:
Suppose the monetary base is 2000 dollars, currency held by the public is 600 dollars, bank excess reserves are 200 dollars, and the required reserve ratio is 10 percent.
1- Compute the amount of demand deposit
2- The value credit expansion multiplier
3- The value of money multiplier
4- The quantity of money supply
5- The maximum deposit that could be created.
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