The economy of Elmendyn contains 900 $1 bills. If people hold all money as currency, the quantity of money is   .   If people hold all money as demand deposits and banks maintain 100 percent reserves, the quantity of money is   .   If people hold equal amounts of currency and demand deposits and banks maintain 100 percent reserves, the quantity of money is   .   If people hold all money as demand deposits and banks maintain a reserve ratio of 12.5 percent, the quantity of money is   .   If people hold equal amounts of currency and demand deposits and banks maintain a reserve ratio of 12.5 percent, the quantity of money is   .

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter21: The Monetary System
Section: Chapter Questions
Problem 12PA
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The economy of Elmendyn contains 900 $1 bills.
If people hold all money as currency, the quantity of money is
 
.
 
If people hold all money as demand deposits and banks maintain 100 percent reserves, the quantity of money is
 
.
 
If people hold equal amounts of currency and demand deposits and banks maintain 100 percent reserves, the quantity of money is
 
.
 
If people hold all money as demand deposits and banks maintain a reserve ratio of 12.5 percent, the quantity of money is
 
.
 
If people hold equal amounts of currency and demand deposits and banks maintain a reserve ratio of 12.5 percent, the quantity of money is
 
.
 
 

 

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