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Talja [164]
3 years ago
15

The economy of Elmendyn contains 3,000 $1 bills.

Business
1 answer:
Salsk061 [2.6K]3 years ago
7 0

Answer:

The correct answer is:

$3,000; $3,000; $3,000; $15,000; $5,454.54

Explanation:

An economy contains 3,000 bills of $1.

If people hold all the money as currency,

the quantity of money in the economy

= 3,000 \times $1

= $3,000

If people hold all money as demand deposits and maintain 100% reserves

The quantity of money is

= 100% of $3,000

= $3,000

If people hold equal amounts of currency and demand deposits, and the banks maintain a reserve ratio of 100%

The quantity of money

= $1,500 + 100% of $1,500

= $3,000

If people hold all money as demand deposits and banks maintain a reserve ratio of 20 percent

The money multiplier

= \frac{1}{0.2}

= 5

The quantity of money

= 5 \times $3,000

= $15,000

If people hold equal amounts of currency and demand deposits and maintain a reserve ratio of 20%,

Currency = Demand deposits

10 \times ($3,000 - C) = D

$30,000 - 10C = D

We can also write this as,

$30,000 - 10D = D

$30,000 = 11D

D = 2,727.27

So the quantity of money will be

= $2,727.27 + $2,727.27

= $5,454.54

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Answer:

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Answer:

The percentage change in nominal GDP from 2013 to 2014 was 4.29%

The percentage change in real GDP from 2012 to 2013 was 1.48%

The percentage change in real GDP from 2012 to 2013 was higher than the percentage change in real GDP from 2011 to 2012. FALSE

Explanation:

In order to calculate this we just have to calculate the percentages with a rule of thirds:

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To calculate the change in real GDP we use the values adapted to a pre-agreed monetary value, in this case the dollar at 2009:

\frac{GDP1}{100}= \frac{GDP2}{x}\\\frac{15,354.6}{100}= \frac{15,583.3}{x}\\x=\frac{(100)(15,583.3}{15,354.6} \\x=1.48%

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