mjackson85601 mjackson85601

10-01-2024
Business

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In the economy of Robberia, the monetary base is $2400. People hold 35% of their money in the form of currency (and thus 65% as bank deposits). Banks hold 30% of their deposits in reserve.
(a) Calculate the money supply.
(i) $3840
(ii) $3200
(iii) $2400
(iv) $2080

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