Econometrics ( from the GRE Economics Test ) This and the next exercise are based on the following simplified model of the determination of the money stock: M = C + D C = 0.2 D R = 0.1 D H = R + C where M = Money Stock C = Currency in circulation R = Bank Reserves D = Deposits of the public H = High-powered money If the money stock were $120 billion, what would bank reserves have to be?
Econometrics ( from the GRE Economics Test ) This and the next exercise are based on the following simplified model of the determination of the money stock: M = C + D C = 0.2 D R = 0.1 D H = R + C where M = Money Stock C = Currency in circulation R = Bank Reserves D = Deposits of the public H = High-powered money If the money stock were $120 billion, what would bank reserves have to be?
Solution Summary: The author calculates the bank reserves if the money stock was 120 billion.
Econometrics (from the GRE Economics Test) This and the next exercise are based on the following simplified model of the determination of the money stock:
M
=
C
+
D
C
=
0.2
D
R
=
0.1
D
H
=
R
+
C
where
M
=
Money Stock
C
=
Currency in circulation
R
=
Bank Reserves
D
=
Deposits of the public
H
=
High-powered money
If the money stock were $120 billion, what would bank reserves have to be?
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, subject and related others by exploring similar questions and additional content below.
Compound Interest Formula Explained, Investment, Monthly & Continuously, Word Problems, Algebra; Author: The Organic Chemistry Tutor;https://www.youtube.com/watch?v=P182Abv3fOk;License: Standard YouTube License, CC-BY
Applications of Algebra (Digit, Age, Work, Clock, Mixture and Rate Problems); Author: EngineerProf PH;https://www.youtube.com/watch?v=Y8aJ_wYCS2g;License: Standard YouTube License, CC-BY