2000 2010 2020 Currency in 517 870 1718 circulation Checkable 582 826 2297 deposits Excess Reserves 1 1162 1519 Required Reserves 41 64 208 billions of $, Month of February. Refer to the value of the value of the money multiplier calculated for February 2020. Suppose the Federal Reserve expands the monetary base by 500 billion dollars in February 2020. If the money multiplier remains constant, what is the new value for M1?

Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter12: Money, Banking And The Financial System
Section12.3: How Banking Developed
Problem 3ST
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7

2000
2010
2020
Currency in
517
870
1718
circulation
Checkable
582
826
2297
deposits
Excess Reserves
1162
1519
Required
Reserves
41
64
208
billions of $, Month of February.
Refer to the value of the value of the money multiplier calculated
for February 2020. Suppose the Federal Reserve expands the
monetary base by 500 billion dollars in February 2020. If the
money multiplier remains constant, what is the new value for M1?
4,515
Transcribed Image Text:2000 2010 2020 Currency in 517 870 1718 circulation Checkable 582 826 2297 deposits Excess Reserves 1162 1519 Required Reserves 41 64 208 billions of $, Month of February. Refer to the value of the value of the money multiplier calculated for February 2020. Suppose the Federal Reserve expands the monetary base by 500 billion dollars in February 2020. If the money multiplier remains constant, what is the new value for M1? 4,515
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