Question: Problem 1. Due to the market expectations about increasing inflation and in order to increase liquidity in the banking industry, the Fed decides to increase

Problem 1. Due to the market expectations about increasing inflation and

Problem 1. Due to the market expectations about increasing inflation and in order to increase liquidity in the banking industry, the Fed decides to increase required reserve ratio to 15%. At the same time the Fed decrease the actual supply by 1,000 million dollars. What is the change in total trading cash volume in this economy

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