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Ludmilka [50]
3 years ago
6

In Macroland there is $10,000,000 in currency. The public holds half of the currency and banks hold the rest as reserves. If ban

ks' desired reserve/deposit ratio is 10%, deposits in Macroland equal ________ and the money supply equals ________.
Business
1 answer:
kipiarov [429]3 years ago
3 0

Answer:

$50,000,000; $55,000,000

Explanation:

In Macroland there is $10,000,000 in currency. The public holds half of the currency and banks hold the rest as reserves. If banks' desired reserve/deposit ratio is 10%, deposits in Macroland equal <u>$50,000,000 </u> and the money supply equals <u>$55,000,000</u>

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Prerequisite 1  

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8 0
3 years ago
Durable Goods $1,250 Nondurable Goods $2,130 Services $9,000 Fixed Investment $1,800 Changes to Business Inventory $135 Investme
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Answer:

Given that,

Durable Goods = $1,250

Non-durable Goods = $2,130

Services = $9,000

Fixed Investment = $1,800

Changes to Business Inventory = $135

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Federal Government Purchases = $1,800

State/Local Government Purchases = $1,700

Transfer Payments = $675

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Imports into the United States = $2,400

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(b) Private investment, I = Fixed investment + change in inventory + Investment in stocks/bonds

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(c) Government spending, G = Federal government purchase + state/local government purchase

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(d) Net exports = Exports - Imports

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        = $12,380 + $17,435 + $3,500 + (-$300)

        = $33,015

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