ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Calculate the value of M2 if M1 is $140,000 and the value of savings with post office saving bank is $8000 million
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- What will be the estimated money multiplier if the cash reserve ratio in the economy is 8%arrow_forwardFind the value of money multiplier if the required reserve ratio is 50%?arrow_forwardYou sell $10,000 of money market mutual fund shares and deposit them in a checking account with a bank. What is the effect on M1 and M2?arrow_forward
- Calculate the value of M1 if M3 is $14000 million and the net time deposits with banks is $8000 millionarrow_forwardFind the M2 If M1 is 151 and the total deposit with post office saving bank is 7310arrow_forwardCalculate the legal reserve requirement if initial deposit of $300 million lead to creation of total deposits of $1800 millionarrow_forward
- Question 17 Which of the following is included in M2, but not in M1? o checking account deposits O cash and coins O time deposits O traveler's checksarrow_forwardwhy does m2 fall and not remain unchanged? doesn't M2 consist of both M1 and M2? so when M1 rise (due to more cash), savings account (which is under M2) will drop by the same amount as M1 rise, hence overall M2 will remain unchanged?arrow_forwardif the required reserve ratio is 1/3, currency in circulation is $300 billion, checkable deposists are $900 billion, and there is no excess reserve, calculate the M1 money multiplier.arrow_forward
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