Multiple Choice
In Macroland there is $12,000,000 in currency. The public holds half of the currency and banks hold the rest as reserves. If banks' desired reserve/deposit ratio is 12.5 percent, deposits in Macroland equal ________ and the money supply equals ________.
A) $48,000,000; $75,000,000
B) $54,000,000; $54,000,000
C) $48,000,000; $54,000,000
D) $96,000,000; $96,000,000
Correct Answer:
Verified
Correct Answer:
Verified
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