1. If c were 0.1 and r were 0.01, by how much would M4 expand if the...

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1. If c were 0.1 and r were 0.01, by how much would M4 expand if the monetary base rose by £1 million?

2. Money supply (M4) includes wholesale as well as retail deposits. Given that firms will wish to keep

only a very small fraction of a rise in wholesale deposits in cash (if any at all), how will a change in the

balance of wholesale and retail deposits affect the value of c and hence of the money multiplier?

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Economics

ISBN: 978-1292187853

10th edition

Authors: John Sloman, Jon Guest, Dean Garratt

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Question Posted: Apr 03, 2019 10:09 AM

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1. If c were 0.1 and r were 0.01, by how much would M4 expand if the...

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1 Putting the figures into the formula m 1 cr c give...View the full answer

Economics

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