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Assume That the Monetary Base (B) Is $100 Billion, the Reserve-Deposit

question 70

Essay

Assume that the monetary base (B) is $100 billion, the reserve-deposit ratio (rr) is 0.1, and the currency-deposit ratio
(cr) is 0.1.
a. What is the money supply?
b. If rr changes to 0.2, but cr is 0.1 and B is unchanged, what is the money supply?
c. If rr is 0.1 and cr is 0.2, but B is unchanged, what is the money supply?

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Definitions:

Ideological

Relating to or characterized by a set of beliefs, values, or ideas that shapes one's view of the world and forms the basis for political or social theory and policy.

Partisanship

Strong, often blind allegiance to a particular political party or cause, frequently leading to political bias and a lack of impartiality.

Media Effect

The influence that media and its various forms have on people's attitudes, behaviors, and perceptions.

Stoking Fear

The practice of deliberately arousing public fear or alarm, often used as a tactic in politics or media.

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