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Suppose the Following Statistics Are Available for the Economy

question 87

Essay

Suppose the following statistics are available for the economy:
CU = $60 billion
RES = $100 billion
DEP = $1000 billion
(a)Calculate the size of the monetary base,the money supply,the reserve-deposit ratio,the currency-deposit ratio,and the money multiplier.
(b)Suppose the currency-deposit ratio rises to .10,while the reserve-deposit ratio and monetary base remain unchanged.Calculate the money multiplier,the money supply,and the new values of CU,RES,and DEP.


Definitions:

Cutin

A waxy hydrophobic polymer present in the cell walls of plant epidermal cells, forming a protective barrier against environmental stress.

Secondary Xylem

The part of a plant that transports water and nutrients from the roots to the leaves and provides structural support, formed after the primary xylem during growth.

Vascular Cambium

A layer of tissue in plants that generates new phloem and xylem cells, contributing to the stem's radial growth.

Pith

The innermost tissue in the stems and roots of many herbaceous plants; primarily a storage tissue.

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