Suppose the following data apply:

Toal bank reserve: $34 billion

Total bank deposit $600 billion

Cash help by public $200 billion

Bonds held by public $220 billion

Stock held b public $140 billion

Gross domestic products $ trillion

Intrest rate 6 %

Require reserve ratio: 0.05

(a) How large is the money supply?

(b) How much excess reserves are there?

(c) What is the money multiplier?

(d) What is the availble lending capacity?

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Reid WolffLv2

16 May 2019

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