Reference no: EM13731189
The economy of the Village of Pantherville contains 50,000 $1 bills. [Briefly explain how you arrived at each of your answers.]
a) If people in Pantherville hold all money as currency, what is the quantity of money?
b) If people hold all money as demand deposits and the Bank of Pantherville maintains 100% reserves, what is the quantity of money?
c) If people hold equal amounts of currency and demand deposits and the Bank of Pantherville maintains 100% reserves, what is the quantity of money?
d) If people hold all money as demand deposits and the Bank of Pantherville maintains a reserve ratio of 10%, what is the maximum quantity of money? [Hint: What is the money multiplier with a reserve ratio of .1?]
e) If people hold equal amounts of currency and demand deposits and the Bank of Pantherville maintains a reserve ratio of 10%, what is the qualtity of money? [This is more challenging, but some simple algebra can be of assistance. Consider the following equations:
1) M = C + D (quantity of money equals currency + deposits)
2) C = D (currency must equal demand deposits)
3) 10*($50,000 - C) = D (total demand deposits equals the money multiplier times available reserves. In this instance total available reserves are (50,000 - currency holdings)
Substitute (3) into (2) and solve for C
Then once you have C, you can solve for M given that C must equal D.]
|
Write an essay on the different works of art in class
: Choose an object that you are interested in. Prior to writing your essay, look at the object for an extended period and take notes about every detail you see and everything you think.
|
|
Benefits and disadvantages of scenario
: In 2-3 pages answer the following: Do you think that public administrators should be restricted to only laid down rules in the discharge of their duties as espoused by Max Weber or should they have some amount of discretion. Provide the likely be..
|
|
Influence the actions of the organization members
: Organizational culture is a shared pattern of beliefs, expectations, and meanings that influence the actions of the organization's members. What do you think constitutes a "toxic" culture? Describe any personal experience of an organization that w..
|
|
Law or in an employment contract
: Employees have certain legal rights such as the right to be paid a minimum wage and to have a workplace free of sexual harassment. Should employees have rights that are not specified in the law or in an employment contract? Provide examples from y..
|
|
What is the quantity of money
: If people in Pantherville hold all money as currency, what is the quantity of money - what is the quantity of money?
|
|
The globalization of the workforce is an important trend
: The globalization of the workforce is an important trend in many industries and organizations. Not only are some project managers assigned to different countries to complete an assignment, but many virtual teams also have membership that spans dif..
|
|
Explain the summary about the movie last of the mohicans
: Explain the summary about the movie Last of the Mohicans. talk at the begging about the goal of the movie then summarize the movie.
|
|
Management information systems
: Compare and contrast the management information systems (MIS) in place in 2 distinctly different organizations. Compare each organization's use of information systems to help manage internal operations and to make decisions.
|
|
Create a revised mission statement
: Create a revised Mission Statement that illustrates a more effective Mission Statement if you feel that this statement is ineffective
|