In the economy of Robberia, the monetary base is $2,000. People hold half of their money in the form of currency (and thus half as bank deposits). Banks hold a quarter of their deposits in reserve. What are the reserve to deposit ratio? The currency to deposit ratio? The money multiplier? The money supply?
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In the economy of Robberia, the monetary base is $2,000. People hold half of their money in the form...
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