Imagine that the chairperson of the Federal Reserve announced that, as of the following day, all currency
in circulation in the United States would be worth 10 times its face denomination. For example, a $10 bill would be
worth $100; a$100 bill would be worth $1,000, etc. Furthermore, the balance in all checking and savings accounts
is to be multiplied by 10 as will the balance of all outstanding debts. So, if you have $500 in your checking account,
as of the followingday, your balance would be $5,000, etc.
Would you actually be 10 times better off on the day the announcement took effect?
What would be the effects of such a policy?