What is the money multiplier Round to 3 decimal places A 3429 B 4333 C 4012 D

# What is the money multiplier round to 3 decimal

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5.What is the money multiplier? Round to 3 decimal places. A) 3.429B) 4.333C) 4.012D) 5.413Feedback: MM = [(C/D + 1) / (C/D + RR/D + ER/D)] = [(.20 + 1) / (.20 + .10 + .05] = 3.42857 = MM Table for Individual Question Feedback Points Earned: 3.0/3.0 Correct Answer(s): A 6.What is the money supply? Use mm x MB to calculate this and Round to the nearest whole number.
Table for Individual Question Feedback Points Earned: 3.0/3.0 Correct Answer(s): D 7.Now the Chair calls and asks you how things are going and you tell him/her that you injected \$100 billion in the system but it didn’t work because banks are holding on to the ER (the banks never loaned them out, they hoarded them instead).Scenario C: Now you get some calls from bankers and you learn that there has been some ‘internal substitution’ within the M1 money supply. In particular, households prefer to hold more currency relative to deposits, i.e., the currency to deposit ratio rises. The new numbers are as follows:rr/D= .10C = 800 bD = 1600 bER =100 bUse the new conditions from SCENARIO C to answer #7-9.What is the MB? Table for Individual Question Feedback Points Earned: 3.0/3.0 Correct Answer(s): C 8.What is the money multiplier? Round to 4 decimal places.
Table for Individual Question Feedback Points Earned: 3.0/3.0 Correct Answer(s): B 9.What is the money supply? Use mm x MB to calculate this and Round to the nearest whole number. A) 600B) 700C) 1060D) 2400E) 3200Feedback: M = 2.2642 x 1060 = 2400.052 = M = C + D Table for Individual Question Feedback Points Earned: 3.0/3.0 Correct Answer(s): D

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