Considered the following data for an economy. Currency in circulation held by the public: CU = 400 dollars; Monetary Base: B = 800 dollars; currency/deposit ratio: cu = 0.25.            a) What is the value of deposits in this economy?           b) What is the value of the money multiplier in this economy?

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Chapter18: Money And The Federal Reserve System
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1. Considered the following data for an economy. Currency in circulation held by the public: CU = 400 dollars; Monetary Base: B = 800 dollars; currency/deposit ratio: cu = 0.25.

           a) What is the value of deposits in this economy?

          b) What is the value of the money multiplier in this economy?

 
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