The economy of Moneyland contains 5000 $1 bills. a. If people hold all money as currency, what is the quantity of money? b. If people hold all money as demand deposits and banks maintain %100 reserves , what is the quantity of money? c. If people hold equal amounts of currency and demand deposits and banks maintain %100 reserves , what is the quantity of money? d. If people hold all money as demand deposits and banks maintain %20 reserves , what is the quantity of money?

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Q: Thank you for your help!!!!!

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Q: Please help me to answer part B  THANKS

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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: please find the answer below.

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A: The formula for money multiplier: Money multiplier = 1 / Required Reserve Ratio

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A: Money supply can be calculated by using the following formula.

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A:

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A: a)5000

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Q: The economy of Elmendyn contains 2000 $1 bills. a) If people hold all money as currency, what is…

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A: Here, we calculate the given as follow;