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

question 74

Multiple Choice

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 _______.

• A)$50,000,000; $60,000,000
• B)$55,000,000; $55,000,000
• C)$50,000,000; $55,000,000
• D)$100,000,000; $100,000,000

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Definitions:

Linear Programming

A mathematical methodology for optimizing a linear objective function, subject to linear equality and linear inequality constraints.

Objective Function

A mathematical expression representing the goal of an optimization problem, typically to maximize or minimize some quantity.

Constraint Equations

Mathematical expressions that specify the limitations or requirements that must be met in optimization and other mathematical problems.

Feasible Solutions

A set of solutions that meet all the constraints of a particular problem, available for consideration in decision-making processes.