The economy of Elmendyn contains 2000 $1 bills. a) If people hold all money as currency, what is the quantity of money supply ? b) If people hold all money as demand deposit and banks maintains 100% reserves what is quantity of money? c) if people equal amount of currency and demand deposits and  bank  maintains 100% reserves, what is quantity of money?

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A: Hi, thank you for the question. As per the guidelines, we are allowed to attempt only first question…

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A:

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A: Hey, thank you for the question. According to our policy we can only answer up to 3 subparts per…

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A: Total demand for high powered money can be calculated by using the following formula.

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A:

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A:

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Q: What are demand deposits and why should they be included in the stock of money?

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: If the Central Bank of Macroland puts an additional 3,000 dollars of currency Into the economy, the…

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Q: III. 1. If excess reserves are zero and the BSP increases the required reserve ratio from 5 percent…

A: Note:- Since we can only answer up to three subparts, we'll answer the first three. Please repost…

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Q: An economy has $250'000,000 of cash in circulation, with the monetary base (or high expansionary…

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A: Central bank:  It means an apex financial institution of the country.  Liabilities are the deposit…

Q: Use the information below to answer the following questions: C=currency = 1000, Deposits=D = 800,…

A: Here, we calculate the given as follow;