Calculate the values for the currency to deposit ratio

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Reference no: EM131303101

Consider the following data:

155_Table 2.jpg

a. Calculate the values for the currency-todeposit ratio, the ratio of total reserves to deposits, the monetary base, the M1 money multiplier, and the M1 money supply.

b. Suppose that the ratio of total reserves to deposits changes from the value you calculated in part (a) to 2.0. (Assume that the currency-to-deposit ratio remains the same.) Now what is the value of the money multiplier?

Reference no: EM131303101

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