Question: What are the differences between the three hypothetical countries money supplies, money multipliers, and likely impacts on each economy? In the hypothetical country of Westlandia,

What are the differences between the three hypothetical countries money supplies, money multipliers, and likely impacts on each economy?

  1. In the hypothetical country of Westlandia, banks are required to hold 20% of checkable deposits as reserves, and the public holds 50% of the loans as currency in circulation and redeposits the remaining 50% percent of the loans.
  2. In the hypothetical country of Middlelandia, banks are required to hold 20% of checkable deposits as reserves, and the public holds none of the loans as currency in circulation and redeposits all of the loans.
  3. In the hypothetical country of Eastlandia, banks are required to hold 10% of checkable deposits as reserves, and the public holds none of the loans as currency in circulation and redeposits all of the loans.

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