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Suppose in an economy, the currency in circulation is $5,000, the vault cash is $500, the checkdeposit is $10,000, the required reserve ratio is $10%, and the deposit of commercial banks atthe federal reserve is $1,000.1. calculate what is amount of the money supply? 2. calculate what is the amount of the money base? 3. calculate what is the amount of the required reserve and what is the amount of the excessreserve?
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Your grandmother told you a dollar doesn't go as far as it used to. she says the purchasing power of a dollar is much lesser than it used to be. explain what she means. try and use and explain terms like inflation and deflation in your answer.
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Suppose in an economy, the currency in circulation is $5,000, the vault cash is $500, the checkdepos...
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