Calculate how much the central bank needs to transact


Problem

In the economy of Robberia, the monetary base is $4300. People hold 30% of their money in the form of currency (and thus 70% as bank deposits). Banks hold 20% of their deposits in reserve.

Throughout this question, enter all answers to THREE places after the decimal.

In the face of this panic, the central bank wants to conduct an open market operation to keep the money supply at its original level. Calculate, in dollars, how much the central bank needs to transact.

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Macroeconomics: Calculate how much the central bank needs to transact
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