If the reserve requirement ratio = 10% & the Federal Reserve Board decreases the reserve requirement...
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If the reserve requirement ratio = 10% & the Federal Reserve Board decreases the reserve requirement ratio to 5%, will the money supply increase or decrease? Why? 6. If the reserve requirement ratio is 5% and there are $20,000 in new deposits in the banking system. Therefore, the money-creating potential of the commercial banking system equals 7. If the reserve requirement ratio is 10% and there are $100,000 in new deposits in the banking system. Therefore, the money-creating potential of the commercial banking system equals If the reserve requirement ratio = 10% & the Federal Reserve Board decreases the reserve requirement ratio to 5%, will the money supply increase or decrease? Why? 6. If the reserve requirement ratio is 5% and there are $20,000 in new deposits in the banking system. Therefore, the money-creating potential of the commercial banking system equals 7. If the reserve requirement ratio is 10% and there are $100,000 in new deposits in the banking system. Therefore, the money-creating potential of the commercial banking system equals
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