Question: URGENT!! PLEASE HELP!! This exercise is based on the following simplified model of the determination of the money stock. =+ =0.2 =0.1 =+ where M

URGENT!! PLEASE HELP!! This exercise is based on the following simplified model of the determination of the money stock.

=+

=0.2

=0.1

=+

where M - money stock

C - currency in circulation

R - bank reserves

D - deposits of the public

H - high-powered money

If the money stock were $192 billion, what would bank reserves have to be?

$16 billion

$18 billion

$11 billion

$12 billion

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