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Refer to table below. Suppose that the Fed had decided to set the US. money supply in December 1932 and in December 1933 at the same value as in December 1930. a. Assuming that the values of currency held by the public and the resenrve-deposit ratio had remained as given in the table, what should the values of bank reserves be to reach the stated target for the U.S. money supply? Instruction: Enter all responses rounded to two decimal places. Currency held Reserve-deposit by public Actual Bank Money Supply 5 44.1 billion s 3.79 billion $ 44.1 billion s 4.82 billion ratio reserves Needed Bank reserves $ 3.31 billion s 3.18 billion $ 3.45 billion December 1938 e.082 $ 3.31 billion December 1932 0.109 billion December 1933 $ 44.1 billion s 4.85 billion 0.133 billion

Refer to table below. Suppose that the Fed had decided to set the US. money supply in December 1932 and in December 1933 at the same value as in December 1930. a. Assuming that the values of currency held by the public and the resenrve-deposit ratio had remained as given in the table, what should the values of bank reserves be to reach the stated target for the U.S. money supply? Instruction: Enter all responses rounded to two decimal places. Currency held Reserve-deposit by public Actual Bank Money Supply 5 44.1 billion s 3.79 billion $ 44.1 billion s 4.82 billion ratio reserves Needed Bank reserves $ 3.31 billion s 3.18 billion $ 3.45 billion December 1938 e.082 $ 3.31 billion December 1932 0.109 billion December 1933 $ 44.1 billion s 4.85 billion 0.133 billion

Brief Principles of Macroeconomics (MindTap Course List)
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter11: The Monetary System
Section: Chapter Questions
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Refer to table below. Suppose that the Fed had decided to set the U.S. money supply in December 1932 and in December 1933 at the same value as in December 1930. a. Assuming that the values of currency held by the public and the reserve-deposit ratio had remained as given in the table. what should the values of bank reserves be to reach the stated target for the U.S. money supply? Instruction: Enter all responses rounded to two decimal places. Currency held Reserve-deposit Actual Bank ratio by public $ 44.1 billion s 3.79 billion $ 44.1 billion $ 4.82 billion $ 44.1 billion $ 4.85 billion Money Supply Needed Bank reserves reserves $ 3.31 billion $ 3.18 billion $ 3.45 billion December 1930 0.082 $ 3.31 billion December 1932 0.109 billion December 1933 0.133 billion
Transcribed Image Text:Refer to table below. Suppose that the Fed had decided to set the U.S. money supply in December 1932 and in December 1933 at the same value as in December 1930. a. Assuming that the values of currency held by the public and the reserve-deposit ratio had remained as given in the table. what should the values of bank reserves be to reach the stated target for the U.S. money supply? Instruction: Enter all responses rounded to two decimal places. Currency held Reserve-deposit Actual Bank ratio by public $ 44.1 billion s 3.79 billion $ 44.1 billion $ 4.82 billion $ 44.1 billion $ 4.85 billion Money Supply Needed Bank reserves reserves $ 3.31 billion $ 3.18 billion $ 3.45 billion December 1930 0.082 $ 3.31 billion December 1932 0.109 billion December 1933 0.133 billion
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