Question

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

Answer 1

250

Step-by-step explanation:

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

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

=2.5

=2.5×100

=250