Suppose that:

r = required reserve ratio = 0.15
c = {C/D} = currency ratio = 0.45
e = {ER/D} = excess reserve ratio = 0.05
MB = the monetary base = $3,000 billion

Given that the formula for the money multiplier is (1 + c)/(r + e + c), find the value for M, the money supply.

In each of the following, what happens to the unemployment rate? does the unemployment rate give an accurate impression of what’s happening in the labor market? a. esther lost her job and begins looking for a new one. b.sam, a steelworker who has been out of work since his mill closed last year, becomes discouraged and gives up looking for work. c.dan, the sole earner in his family of 5, just lost his $90,000 job as a research scientist. immediately, he takes a part-time job at starbucks until he can find another job in his field.