This Exercise Is Based on the Following Simplified Model of the Determination

question 97

Short Answer

This exercise is based on the following simplified model of the determination of the money stock.
$\begin{array} { l } M = C + D \\C = 0.2 D \\R = 0.1 D \\H = R + C\end{array}$ ,

where M - money stock
C - currency in circulation
R - bank reserves
D - deposits of the public
H - high-powered money
If the money stock were $108 billion, what would bank reserves have to be

$____________billion

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Definitions:

Digitizer

Provides input into documents such as architectural drawings, technical plans, and photos. It can also be used to draw electronic pictures.

Multimedia Device

A device capable of handling various forms of media, including audio, video, and digital content, often for entertainment or educational purposes.

Digital Bits

The smallest unit of data in computing and digital communications, representing a binary value of 0 or 1.

Digitizer

A device or component that converts analog signals into digital form, often used in screens to detect touch inputs.