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Calculate the values of the m1 multiplier and of the total

Assume that an economy, in which all deposits issued by commercial banks are demand deposits, is characterized by the following information:

Ratio of currency to demand deposits: 0.20

Required reserve ratio (ratio of required reserves to demand deposits): 0.10

Excess reserve ratio (ratio of excess reserves to demand deposits): 0.05

Total monetary base: $100 billion

Calculate the values of the M1 multiplier and of the total stock of M1.

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Basic Computer Science: Calculate the values of the m1 multiplier and of the total

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Basic Computer Science: Calculate the values of the m1 multiplier and of the total

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