Let the total amount of currency in the economy be $1,298.4 billion, the total amount of commercial banks' reserves at the Fed be $2,621.2 billion, and the total amount of deposits be $10,647.9 billion. Then money multiplier in this economy is Note: Type in your answer rounded to two decimal places, i.e., your answer must be of the form "999.99". I will not be able to fix correct answers that were entered incorrectly, such as "999.999" or "999,99" or "999". In case the last digit in the correct answer is zero, e.g., "999.90" or "999.00", Blackboard may automatically delete it and you should not do anything about it. In case of percentages, do not type in the percentage symbol %". If your answer is a negative number, type a dash in front of your answer, i.e, "-999.99".
Let the total amount of currency in the economy be $1,298.4 billion, the total amount of commercial banks' reserves at the Fed be $2,621.2 billion, and the total amount of deposits be $10,647.9 billion. Then money multiplier in this economy is Note: Type in your answer rounded to two decimal places, i.e., your answer must be of the form "999.99". I will not be able to fix correct answers that were entered incorrectly, such as "999.999" or "999,99" or "999". In case the last digit in the correct answer is zero, e.g., "999.90" or "999.00", Blackboard may automatically delete it and you should not do anything about it. In case of percentages, do not type in the percentage symbol %". If your answer is a negative number, type a dash in front of your answer, i.e, "-999.99".
Chapter14: Banking And The Money Supply
Section: Chapter Questions
Problem 3.4P
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Transcribed Image Text:QUESTION 8
Let the total amount of currency in the economy be $1,298.4 billion, the total amount of commercial banks' reserves at the Fed be $2,621.2 billion, and the total amount
of deposits be $10,647.9 billion. Then money multiplier in this economy is
Note: Type in your answer rounded to two decimal places, i.e., your answer must be of the form "999.99". I will not be able to fix correct answers that were entered
incorrectly, such as "999.999" or "999,99" or "999". In case the last digit in the correct answer is zero, e.g., "999.90" or "999.00", Blackboard may automatically delete it
and you should not do anything about it. In case of percentages, do not type in the percentage symbol "%". If your answer is a negative number, type a dash in front of
your answer, i.e, "-999.99".
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