If the required reserve ratio is 10 percent, currency in circulation is $1,200 billion, checkable deposits are $1,600 billion, and excess reserves total $2,500 billion, then the m1 money multiplier is

a. 2.5.
b. 7.3.
c. 1.7.
d. 0.73.

Option D.

Step-by-step explanation:

Given information:

Required reserve ratio (rr)= 10%= 0.1

Currency in circulation (C)= $1,200 billion

Checkable deposits (D)= $1,600 billion

Excess reserves total (ER)= $2,500 billion

The formula for the M1 money multiplier is

where, C is currency in circulation, D is deposits, ER is excess reserve and rr is required reserve ratio.

Substitute the given values in the above formula.

The M1 money multiplier is 0.73. Therefore, the correct option is D.

the size of the resulting matrix is 1-by-3.

step-by-step explanation:

the size of the two matrices given are as follows:

no .of rows of matrix 1 = 1

no .of columns of matrix 1 = 3

no .of rows of matrix 1 = 3

no .of columns of matrix 1 = 3

to find the size of the resulting matrix without actually solving the multiplication of the matrix, this is what you do:

if resulting matrix = matrix 1 * matrix 2

no. of rows of the resulting matrix = number of rows of matrix 1

no. of columns of resulting matrix = number of columns of matrix 2

note: the order of the matrices matter!

answer: 819.89 miles across america

step-by-step explanation: