The economy of XYZ contains 3,000 $1 bills. If people hold equal amounts of currency and demand deposits after the money creation process, and banks maintain a reserve ratio of 30 percent, what is the quantity of money? 5000.79 4615.38 6500.05 O2307.69.

Essentials of Economics (MindTap Course List)
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ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter21: The Monetary System
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The economy of XYZ contains 3,000 $1 bills. If people hold equal amounts
of currency and demand deposits after the money creation process, and
banks maintain a reserve ratio of 30 percent, what is the quantity of
money?
5000.79
4615.38
6500.05
2307.69.
Transcribed Image Text:39 The economy of XYZ contains 3,000 $1 bills. If people hold equal amounts of currency and demand deposits after the money creation process, and banks maintain a reserve ratio of 30 percent, what is the quantity of money? 5000.79 4615.38 6500.05 2307.69.
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