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Calculate the following amounts for the imaginary economy of Delta.
Please make sure your final answer(s) are accurate to 2 decimal places.
a) The money supply is $1,500, and currency held by the public equals bank reserves. The reserve ratio is 0.2. Find bank reserves.
Bank reserves =
$
b) The money supply is $3,300, of which $800 is currency held by the public. Bank reserves are $250. Find the reserve ratio.
Reserve ratio =
c) Bank reserves are $200, the public holds $1,150 in currency, and the reserve ratio is 0.1. Find deposits and the money supply.
BACC311 Written Report - Economics: Principles, Models and Policies. There is current economic debate on whether governments should intervene in market economy
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