From the following information, calculate the money multiplier. (Assume that M1...
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From the following information, calculate the money multiplier. (Assume that M1 = "the money supply".) (Enter your answer to at least 3 decimal places.)
Paper dollars and coins held by public (not in banks’ vaults)
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$3 trillion
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Paper dollars and coins in banks’ vaults (reserves)
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$2 trillion
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Banks’ accounts at the Federal Reserve
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$6 trillion
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Checking deposits
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$7 trillion
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Savings deposits
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$14 trillion
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