The economy of Elmendyn contains 3,000 $1 bills. If people hold all money as currency, the quantity of money is S If people hold all money as demand deposits and banks maintain 100 percent reserves, the quantity of money is S If people hold equal amounts of currency and demand deposits and banks maintain 100 percent reserves, the quantity of money is $ If people hold all money as demand deposits and banks maintain a reserve ratio of 20 percent, the quantity of money is S If people hold equal amounts of currency and demand deposits and banks maintain a reserve ratio of 20 percent, the quantity of money is S

The economy of Elmendyn contains 3,000 $1 bills. If people hold all money as currency, the quantity of money is S If people hold all money as demand deposits and banks maintain 100 percent reserves, the quantity of money is S If people hold equal amounts of currency and demand deposits and banks maintain 100 percent reserves, the quantity of money is $ If people hold all money as demand deposits and banks maintain a reserve ratio of 20 percent, the quantity of money is S If people hold equal amounts of currency and demand deposits and banks maintain a reserve ratio of 20 percent, the quantity of money is S

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter21: The Monetary System

Section: Chapter Questions

Problem 12PA

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