In the economy of Robberia, the monetary base is $2300. People hold 30% of their money in the form of currency (and thus 70% as bank deposits). Banks hold 15% of their deposits in reserve. Throughout this question, enter all answers to THREE places after the decimal.

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter21: The Monetary System
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In the economy of Robberia, the monetary base is $2300. People hold 30% of their money in the form of currency (and thus
70% as bank deposits). Banks hold 15% of their deposits in reserve.
Throughout this question, enter all answers to THREE places after the decimal.
a. What are the reserve-deposit ratio, the currency-deposit ratio, the money multiplier, and the money supply?
The reserve-deposit ratio equals
The currency-deposit ratio equals
The money multiplier equals
The money supply equals
SA
Transcribed Image Text:In the economy of Robberia, the monetary base is $2300. People hold 30% of their money in the form of currency (and thus 70% as bank deposits). Banks hold 15% of their deposits in reserve. Throughout this question, enter all answers to THREE places after the decimal. a. What are the reserve-deposit ratio, the currency-deposit ratio, the money multiplier, and the money supply? The reserve-deposit ratio equals The currency-deposit ratio equals The money multiplier equals The money supply equals SA
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