1. (30 pts.) suppose the total amount of reserves in the economy is $5 billion, and the public does not directly hold any cash. also, suppose all banks hold excess reserves equal to 4% of deposits and the required reserve ratio is 5%. ( round numerical answers to two decimal places.) a. (2 pts.) calculate the money multiplier. b. (5 pts.) what is the total money supply (or money stock)? c. (8 pts.) bank of america (boa) has $300 million in deposits, $10 million in bank capital (net worth), $203 million in loans, and $80 million in other assets. draw a balance sheet for boa, showing all categories, including the amount of reserves the bank must be holding. now suppose that all banks in the economy decide to reduce excess reserves to just 1%. d. (15 pts.) calculate the new equilibrium money supply, assuming the banks make new loans with all the funds they were formerly holding as reserves but no longer wish to hold.
Answers: 3
Business, 22.06.2019 11:40, keke6361
On coral island in 2012, the labor force is 12,000, the unemployment rate is 10 percent, and the labor force participation rate is 60 percent. during 2013, 200 unemployed people found jobs and the working-age population increased by 1,000. the total number of people in the labor force did not change. the working-age population at the end of 2013 was the unemployment rate at the end of 2013 was round up to the second decimal. the labor force participation rate at the end of 2013 was round up to the second decimal.
Answers: 1
Business, 22.06.2019 17:00, vistagallosky
Which represents a surplus in the market? a market price equals equilibrium price. b quantity supplied is greater than quantity demanded. c market price is less than equilibrium price. d quantity supplied equals quantity demanded.
Answers: 2
Business, 23.06.2019 12:00, aliciagore
Rich is researching for an economics paper on the history of exchange rates between the us and great britain. the best choice for rich to use is
Answers: 3
1. (30 pts.) suppose the total amount of reserves in the economy is $5 billion, and the public does...
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