For these questions,suppose that the reserve requirement for checking deposits is 25%,that banks do not hold any excess reserves,and that the public does not change their holdings of currency.Total reserves already existing in the banking system are $300 million.
(a).What is the money supply in this economy?

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The Answer of For these questions,suppose that the reserve requirement for checking deposits is 25%,that banks do not hold any excess reserves,and that the public does not change their holdings of currency.Total reserves already existing in the banking system are $300 million.
(a).What is the money supply in this economy?

For These Questions,suppose That the Reserve Requirement for Checking Deposits