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Answer to Question #21988 in Macroeconomics for Josh
Question #21988
Suppose the banking system currently has $400 billion in reserves, the reserve requirement is 10 percent, and excess reserves are $3 billion. What is the level of loans?
a. $3,603 billion
b. $3,600 billion
c. $3,573 billion
d. $3,570 billion
My professor already told us that the answer is d. but i cant figure out twhat to do to get the answer.
a. $3,603 billion
b. $3,600 billion
c. $3,573 billion
d. $3,570 billion
My professor already told us that the answer is d. but i cant figure out twhat to do to get the answer.
Expert's answer
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