Question: Suppose the Fed will increase the monetary base by $1,000,000 and the C/D and R/D ratios are 0.30 and 0.15 respectively. Calculate the money multiplier

Suppose the Fed will increase the monetary base by $1,000,000 and the C/D and R/D ratios are 0.30 and 0.15 respectively.

Calculate the money multiplier

Calculate the deposit multiplier

Calculate the cash multiplier

Calculate the change in money supply

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