ECON 201 The First National Bank and The Money Multiplier Question
Order ID 53563633773 Type Essay Writer Level Masters Style APA Sources/References 4 Perfect Number of Pages to Order 5-10 Pages
Q1: You take $500 that you held as currency and put it into the banking system. The reserve ratio is
equal to 20%.
Calculate the money multiplier.
- By how much will increase the total amount of deposits in the banking system?
- By how much will increase the money supply?
Q2: At the beginning of 2018, a town has 152,000 employed people and 8000 unemployed people.
The remaining 40,000 people in the town are not in the labor force.
Based on these numbers:
- Calculate the town’s unemployment rate:
- Calculate the town’s labor force participation rate:
- Calculate Suppose that 10,000 people decide to join the labor force. Of these 10,000 people 7,800 find jobs. What is the unemployment rate at the end of 2018?