Assume the Fed is trying to decide whether to lower the required reserve ratio to 7%. Currently,
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Assume the Fed is trying to decide whether to lower the required reserve ratio to 7%. Currently, the required reserve ratio is 10%. If banks keep no excess reserves, how much more would the money supply increase if the Fed lowers the reserve ratio when someone deposits $300 into a checking account?
Related Book For
Accounting Principles
ISBN: 978-0470533475
9th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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