Support your answer with calculations please. Suppose an economy in which the public holds 10% of its deposits as cash, the monetary base is $50, and the rr is 22%. What is the level of bank deposits?

Support your answer with calculations please. Suppose an economy in which the public holds 10% of its deposits as cash, the monetary base is $50, and the rr is 22%. What is the level of bank deposits?

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter16: The Influence Of Monetary And Fiscal Policy On Aggregate Demand

Section16.1: How Monetary Policy Influences Aggregate Demand

Problem 1QQ

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Suppose an economy in which the public holds 10% of its deposits as cash, the monetary base is $50, and the rr is 22%. What is the level of bank deposits?

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