This exercise is based on the following simplified model of the determination of the money stock.
$\begin{array} { l }
M = C + D \
C = 0.2 D \
R = 0.1 D \
H = R + C
\end{array}$ ,

where M - money stock
C - currency in circulation
R - bank reserves
D - deposits of the public
H - high-powered money
If the money stock were $108 billion, what would bank reserves have to be

$____________billion

Question

This exercise is based on the following simplified model of the determination of the money stock.
  $\begin{array} { l } 
M = C + D \
C = 0.2 D \
R = 0.1 D \
H = R + C
\end{array}$ ,
 
where M - money stock
C - currency in circulation
R - bank reserves
D - deposits of the public
H - high-powered money
If the money stock were $108 billion, what would bank reserves have to be 
 
$____________billion

Quizplus · Accepted Answer

The Answer of This exercise is based on the following simplified model of the determination of the money stock.
  $\begin{array} { l } 
M = C + D \
C = 0.2 D \
R = 0.1 D \
H = R + C
\end{array}$ ,
 
where M - money stock
C - currency in circulation
R - bank reserves
D - deposits of the public
H - high-powered money
If the money stock were $108 billion, what would bank reserves have to be 
 
$____________billion

This Exercise Is Based on the Following Simplified Model of the Determination