Macroeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (7th Edition)
7th Edition
ISBN: 9780134833415
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Chapter 14, Problem 14.5.8PA
To determine
Value of Confederate dollars.
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Answer questions 1-4 about Nigeria's macroeconomy (Nigeria's currency):
Currency in Circulation (October 2020)
40.5 billion nigerian currency
Reserves (October 2020)
34.2 billion nigerian currency
M1 (October 2020)
2,465.9 billion nigerian currency
M2 (October 2020)
2,638.8 billion nigerian currency
Calculate the size of the monetary base in October 2020. one decimal place.
Calculate the size of demand (checking) deposits in October 2020. Round your answer to one decimal place.
Calculate the size of savings deposits in October 2020. Round your answer to one decimal place.
In the following data table, calculate the amount of excess reserves and the monetary base and then use the table to answer the questions that
follow.
Category
Currency, C
Deposits, D
Reserves, R
Required Reserves, RR
Excess Reserves
Monetary Base
Value
(Billions of Dollars)
700.00
500.00
31.00
23.00
$8
$731
0.06
0.02
Use the previous data table to fill in 16.13 sing cells in the following table. (Hint: Round to the nearest hundredth.)
Ratio
Currency Ratio, k
Required Reserves Ratio, r
Excess Reserves Ratio, l'ex
Money Supply Multiplier, MsM
1.4
0.05
16.13
Based on your answers to the previous questions, the money supply is
After suffering two years of staggering hyperinflation, the African nation of Zimbabwe officially abandoned its currency, the Zimbabwean dollar, in April 2009 and made the U.S. dollar its official currency. Why would anyone in Zimbabwe be willing to accept U.S. dollars in exchange for goods and services?
Chapter 14 Solutions
Macroeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (7th Edition)
Ch. 14 - Prob. 14.1.1RQCh. 14 - Prob. 14.1.2RQCh. 14 - Prob. 14.1.3RQCh. 14 - Prob. 14.1.4RQCh. 14 - Prob. 14.1.5PACh. 14 - Prob. 14.1.6PACh. 14 - Prob. 14.1.7PACh. 14 - Prob. 14.1.8PACh. 14 - Prob. 14.1.9PACh. 14 - Prob. 14.2.1RQ
Ch. 14 - Prob. 14.2.2RQCh. 14 - Prob. 14.2.3PACh. 14 - Prob. 14.2.4PACh. 14 - Prob. 14.2.5PACh. 14 - Prob. 14.2.6PACh. 14 - Prob. 14.2.7PACh. 14 - Prob. 14.2.8PACh. 14 - Prob. 14.2.9PACh. 14 - Prob. 14.2.10PACh. 14 - Prob. 14.3.1RQCh. 14 - Prob. 14.3.2RQCh. 14 - Prob. 14.3.3RQCh. 14 - Prob. 14.3.4RQCh. 14 - Prob. 14.3.5PACh. 14 - Prob. 14.3.6PACh. 14 - Prob. 14.3.7PACh. 14 - Prob. 14.3.8PACh. 14 - Prob. 14.3.11PACh. 14 - Prob. 14.3.12PACh. 14 - Prob. 14.4.1RQCh. 14 - Prob. 14.4.2RQCh. 14 - Prob. 14.4.3RQCh. 14 - Prob. 14.4.4RQCh. 14 - Prob. 14.4.5PACh. 14 - Prob. 14.4.6PACh. 14 - Prob. 14.4.7PACh. 14 - Prob. 14.4.8PACh. 14 - Prob. 14.4.9PACh. 14 - Prob. 14.4.10PACh. 14 - Prob. 14.4.11PACh. 14 - Prob. 14.5.1RQCh. 14 - Prob. 14.5.2RQCh. 14 - Prob. 14.5.3RQCh. 14 - Prob. 14.5.4PACh. 14 - Prob. 14.5.5PACh. 14 - Prob. 14.5.6PACh. 14 - Prob. 14.5.7PACh. 14 - Prob. 14.5.8PACh. 14 - Prob. 14.5.9PACh. 14 - Prob. 14.5.10PACh. 14 - Prob. 14.1RDECh. 14 - Prob. 14.2RDECh. 14 - Prob. 14.3RDECh. 14 - Prob. 14.4RDECh. 14 - Prob. 14.5RDECh. 14 - Prob. 14.6RDE
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- “Whenever currency is deposited in a commercial bank, cash goes out of circulation and, as a result, the supply of money is reduced.” Do you agree? Explain why or why not.arrow_forwardMoney is any commodity or token that is _______. Money consists of _______.arrow_forwardWhat is a tool used by the federal open market committee to increase the money supplyarrow_forward
- What problems an economy may face without money supply? How commercial banks create money in fractional reserve banking system? How a central bank uses many tools to control inflation in an economy?arrow_forwardWhy do you think politicians pursue policies that lead to hyperinflation?arrow_forwardCompare and contrast representative money, credit money and commodity moneyarrow_forward
- What is commodity money? Is the money in the United States commodity money?arrow_forwardThe Money Supply: Small Time Deposits (less than $100,000) Demand Deposits and other Checkable Deposits Savings Deposits Money Market Accounts for individuals: Money Market Checking Accounts = $15 billion Money Market Savings & Investment Accounts = $10 billion Money Market Mutual Funds' Accounts (less than $100,000) Currency Large Dollar Accounts (over $100,000): Money market mutual funds for individuals, businesses, governments $650 billion $300 billion $445 billion. $645 billion. $325 billion. $880 billion. $750 billion $25 billion $600 billion $130 billion $100 trillion MZM (money-with-zero-maturity) measures the value of the money supply in circulation for households and businesses to immediately buy goods and services. Given the above listed financial data, MZM calculates to: services. Given the above listed financial data, MZMarrow_forward#27. Identify two examples of commodity money. #28. The U.S. dollar is an example of fiat money. What is fiat money? #29. Why can fiat money be successfully used as a currency despite the fact that it has not intrinsic value backing it up?arrow_forward
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