Problems & Exercises for MACRO
Unit Four (for the Final Exam)
Unit Four--Assignment One--Web Problem 1
Unit Four (for the Final Exam) Unit Four--Assignment One--Web Problem 1Problems & Exercises for MACRO
Assume the following figures reflect country Beta’s commercial banking system:
|
Total Checking Account Deposits |
1600 |
|
Cash Held by the Public |
400 |
|
Total Amount Kept on Reserve by Banks |
200 |
|
Reserve Requirement |
.10 |
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1 |
How much is M1?
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2 |
Are the banks in this system making full usage of their lending capacity? Explain.
|
3 |
What would be the maximum possible expansion of M1 (in theory) if all banks in this system fully utilized their lending capacity? Explain how you arrived at your answer.
Please send your answers via
e-mail.|
Index of Web Site Pages |
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