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Macroeconomics 12th Edition by Michael Parkin
Edition 12ISBN: 978-0133872279Macroeconomics 12th Edition by Michael Parkin
Edition 12ISBN: 978-0133872279 Exercise 5
In the economy of Nocoin, bank deposits are $300 billion. Bank reserves are $15 billion, of which two thirds are deposits with the central bank. Households and firms hold $30 billion in bank notes. There are no coins. Calculate
a. The monetary base and quantity of money.
b. The banks' desired reserve ratio and the currency drain ratio (as percentages).
a. The monetary base and quantity of money.
b. The banks' desired reserve ratio and the currency drain ratio (as percentages).
Explanation
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Verified
Monetary base is computed as the sum of ...
Macroeconomics 12th Edition by Michael Parkin
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