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

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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