Business, 21.04.2020 20:19 quokkamokka97

The economy of Baruchville contains 2000 $1 bills. 1. If people hold all money as currency, what is the quantity of money? 2. If people hold all money as demand deposits and banks maintain 100% reserves, what is the quantity of money? 3. If people hold equal amounts of currency and demand deposits and banks maintain 100% reserves, what is the quantity of money? 4. If people hold all money as demand deposits and banks maintain a reserve ratio of 10%, what is the quantity of money? 5. If people hold equal amounts of currency and demand deposits and banks maintain a reserve ratio of 10%, what is the quantity of money?

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The economy of Baruchville contains 2000 $1 bills. 1. If people hold all money as currency, what is...