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Step 1. In the case of Singleton Bank, for whom the reserve requirement is 10%
(or 0.10), the money multiplier is 1 divided by .10, which is equal to 10.
Step 2. We have identified that the excess reserves are $9 million, so, using the
formula we can determine the total change in the M1 money supply:
Step 3. Thus, we can say that, in this example, the total quantity of money
generated in this economy after all rounds of lending are completed will be $90
million.
Much of the money in an economy is created by the network of banks making
loans, people making deposits, and banks making more loans.
3) Calculate Nominal GDP, Real GDP and GDP deflator.
Nominal GDP
Real GDP
GDP Deflator
5) Absolute Advantage and Comparative Advantage (2 countries , 2 product ,
4year data and data should different of all years).