The monetary base is 79billion and nominal income is 4700


Assume the? following:

I. The public holds no currency.

II. The ratio of reserves to deposits is 0.10

III. The demand for money is given by Md=$Y(0.81−3.5i).

The monetary base is ?$79billion, and nominal income is $4,700 billion.

Determine the value of the money multiplier.

?(Round your response to two decimal? places.)

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Business Economics: The monetary base is 79billion and nominal income is 4700
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