In Macroland there is $10,000,000 in currency.The public holds half of the currency and banks hold the rest as reserves.If banks'desired reserve/deposit ratio is 10%, deposits in Macroland equal ______ and the money supply equals _______.

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The public holds $5,000,000, and banks hold $5,000,000 as reserves. With a 10% reserve ratio, deposits are $50,000,000. The money supply is currency held by the public plus deposits, totaling $55,000,000.

In Macroland There Is $10,000,000 in Currency