In Macroland There Is $12,000,000 in Currency

question 48

Multiple Choice

In Macroland there is $12,000,000 in currency.The public holds half of the currency and banks hold the rest as reserves.If banks'desired reserve/deposit ratio is 12.5%, deposits in Macroland equal ______ and the money supply equals _______.

• A)$48,000,000; $75,000,000
• B)$54,000,000; $54,000,000
• C)$48,000,000; $54,000,000
• D)$96,000,000; $96,000,000

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Definitions:

Dorsal Cavity

A hollow space within the body that includes the cranial and vertebral cavities, housing the brain and spinal cord.

Feedback Mechanism

A regulatory process in biological systems where the output or result influences the activity of the process itself, often maintaining homeostasis.

Negative

Often referring to a lack or absence of a specified substance, condition, or entity in various contexts, such as test results.

Blood pH

The measure of the acidity or alkalinity of blood, crucial for maintaining essential physiological processes.