rr/D = .10
C = 400 billion
D = 800 billion
ER = 0
M = C + D
Given the above information (show all work on your exam sheet):
i) Calculate the MB.
ii) Calculate the money multiplier (mm).
iii) What is the money supply (use MS = mm x MB)?
solved given that rr/D = .10 C = 400 billion D = 800 billion ER = 0 M = C + D ... View the full answer