f currency in circulation is $600 billion, total reserves of the banking system are $800 billion, and total checkable deposits are $2 comma 900 billion, what is the maximum increase in the money supply that can result from the transaction in part (a) ? (That is, the maximum increase after all actions resulting from the transaction in part (a) have occurred.) Be sure to use the realistic money multiplier, as opposed to the simple deposit multiplier, in the calculatio

Question

Rohan Serrano

10 August, 06:36

+1

Answers (1)

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Brenden Kent · Answer 1

250

Explanation:

$600 billion + $2,900 billion / $600 billion + $800 billion

=$3,500 billion/$1,400 billion

=2.5

=2.5*100

=250