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Macroeconomics Homework - Question & Answer

   

Added on  2022-08-08

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Running head: MACROECONOMICS HOMEWORK 7
Macroeconomics Homework 7
Name of the Student
Name of the University
Student ID
Macroeconomics Homework - Question & Answer_1
MACROECONOMICS HOMEWORK 71
Table of Contents
Answer 1..........................................................................................................................................2
Answer 2..........................................................................................................................................2
Answer 3..........................................................................................................................................5
Reference.........................................................................................................................................8
Macroeconomics Homework - Question & Answer_2
MACROECONOMICS HOMEWORK 72
Answer 1
The more realistic money multiplier is given by
Money multiplier (mm)=
1+ C
D
res+ C
D + R
D
Answer 2
(a) Monetary Base (BASE) is given by
Monetary Base=C+ R
¿ , BASE =1250+125
¿ , BASE =1375
¿ , BASE =$ 1375 b
(b) Money Supply (M) is given by
Money Supply
Monetary Base = C+ D
C+ R
¿ , M
Base = 1250+1500
1250+125
¿ , M
1375 = 2750
1375
¿ , M =$ 2750 b
(C) Ratio of reserves to deposits (res) is given by
Macroeconomics Homework - Question & Answer_3

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