suppose that the monetary base is 500 billion the reserve deposit ratio is 0.1 and the currency deposit ratio is 0.6 . find the money multiplier and money supply
Money Multiplier "=" "\\frac {CDR+1}{RDR+CDR}" "=" "\\frac {0.6+1}{0.1+0.6}" "=" 2.28571
Money supply"=" money multiplier"\u00d7" monetary base
2.28571"\u00d7" 500"=" 1142.8571
Answer"=" 1143
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