The monetary policy of tazi is controlled by the country's central bank known as the bank of tazi. the local unit of currency is the taz. aggregate banking statistics show that collectively the banks of tazi hold 300 million tazes of required reserves, 75 million tazes of excess reserves, have issued 7,500 million tazes of deposits, and hold 225 million tazes of tazian treasury bonds. tazia(ns prefer to use only demand deposits and so all money is on deposit at the banksuppose that the bank of tazi changes the reserve requirement ratio to 3 percent.
assuming that the banks still want to hold the same percentage of excess reserves what is the value of the money supply after the change in the reserve requirement ratio? a. 9,375 million tazesb. 10,000 million tazesc. 12,500 million tazesd. none of the above is correct to the nearest million salidos. explain.

Suppose that two firms produce differentiated products and compete in prices. as in class, the two firms are located at two ends of a line one mile apart. consumers are evenly distributed along the line. the firms have identical marginal cost, $60. firm b produces a product with value $110 to consumers. firm a (located at 0 on the unit line) produces a higher quality product with value $120 to consumers. the cost of travel are directly related to the distance a consumer travels to purchase a good. if a consumerhas to travel a mile to purchase a good, the incur a cost of $20. if they have to travel x fraction of a mile, they incur a cost of $20x. (a) write down the expressions for how much a consumer at location d would value the products sold by firms a and b, if they set prices p_{a} and p_{b} ? (b) based on your expressions in (a), how much will be demanded from each firm if prices p_{a} and p_{b} are set? (c) what are the nash equilibrium prices?