ECON 545(DEVRY) help A Clearer path to student success/uophelp.com ECON 545(DEVRY) help A Clearer path to student suc | Page 45

• Read the Making the Connection short case titled Trying to Hit a
Moving Target: Making Policy with Real-Time Data in Chapter 26 of
our textbook, and also be sure to watch the video right under the Making
the Connection title (maybe a few times). Then post your first posting
this week beginning to discuss what you’ve read and watched in the
video.
• Then work on Problems and Applications 3.12, at the end of Chapter
26, answering and discussing the questions in that exercise.
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ECON 545 Week 5 Quiz
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1. Suppose that the reserve requirement is 5%. What is the effect on
the total checkable deposits in the economy if banks reserves
increased by $60 billion?
2. The formula for the simple deposit multiplier is?
3. (Related to Solved Problem # 1) Suppose that simple economy
produces only the following goods and services; shoes,
hamburgers, shirts and cotton. Further, assume that all of the
cotton is used in the production of shirts.