Answer to Question #325894 in Macroeconomics for Bks

Question #325894

Suppose that the monetary base increased by $1.1 billion. If Required reserve ratio and currency deposit ratio called by the public was 20% and 15% respectively. Calculate the increase in money supply.

Expert's answer

The increase in money supply is:

1.1/0.2 = $5.5 billion.

Learn more about our help with Assignments: Macroeconomics

Comments

No comments. Be the first!

Leave a comment

Related Questions

1. According to the Keynesian consumption function, a decrease in income will cause in savings
2. Assuming that tax revenues are $7 Billion and Consumption is $60 Billion How much is the level of sa
3. Suppose a woman marries her chief manservant. After they are married, her husband continues to wait
4. Fill in the blanks: The cumulative sum of all the years of deficit spending in the United States has
5. Assume that the rand/dollar exchange rate is above the equilibrium exchange rate. This will lead to
6. Provide a brief explanation on how the South African economic growth had been performing since 2000.
7. Discuss the fuel tax increase impact the economic growth of S.A

Who Can Help Me with My Assignment

There are three certainties in this world: Death, Taxes and Homework Assignments. No matter where you study, and no matter…
How to Finish Assignments When You Can’t

Crunch time is coming, deadlines need to be met, essays need to be submitted, and tests should be studied for.…
How to Effectively Study for a Math Test

Numbers and figures are an essential part of our world, necessary for almost everything we do every day. As important…