Suppose the total money supply is $400bn, and the parameters to hold reserve ratio equal to 8% of deposits and desired currency ratio by the non-bank public are 2% of deposits. Calculate the following: The monetary base -The stock of currency held by the non-bank public -Bank reserves -What is the effect on the stock of money if the reserve ratio falls to 7 per cent, the currency ratio is unchanged, and the monetary base is held constant?

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