n Country Wise, households and firms want to keep a currency to deposit ratio, c, of 0.20, while banks want to keep a required deposits ratio, r, of 0.10. Banks in this country keep no excess reserves. The price level stands at 1, or 100%, and the money base is $40 billion. a. Calculate the money multiplier. b. What is the money supply? c. How much of the money supply will be held in the form of currency? In the form of bank deposits?

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