Assume That the Monetary Base (B) Is $100 Billion, the Reserve-Deposit

Essay

Assume that the monetary base (B) is $100 billion, the reserve-deposit ratio (rr) is 0.1, and the currency-deposit ratio (cr) is 0.1. a. What is the money supply?
b. If $r r$ changes to $0.2$ , but $c r$ is $0.1$ and $B$ is unchanged, what is the money supply?
c. If $r r$ is $0.1$ and cris $0.2$ , but $B$ is unchanged, what is the money supply?