2 Solving for the money supply: M=C+D- C+DxB=m×B B where C+D m B C+D (C/D)+(D/D) cr+1 C+R (C/D)+(R/D) cr+rr CHAPTER 18 Money Supply and Money Demand slide 14 CHAPTER 18 Money Supply and Money Demand slide 14 Solving for the money supply: M C D = + C D B B + =  =  m B C D C R + = + cr 1 cr rr + = + C D m B + = where ( ) ( ) ( ) ( ) C D D D C D R D + = + 2