A banking system with target reserve ratio is 0.2 starts with no excess reserves. A customer takes $125 from her safe and deposits it into her bank account. Assuming no further change in currency holdings, what will be the ultimate change in money supply (when banks return to having no excess reserves)? (Round to two decimal places and do not enter the currency symbol. If your answer is $6.114, enter 6.11. If your answer is $6.115, enter 6.12. If appropriate, remember to enter the - sign.)

A banking system with target reserve ratio is 0.2 starts with no excess reserves. A customer takes $125 from her safe and deposits it into her bank account. Assuming no further change in currency holdings, what will be the ultimate change in money supply (when banks return to having no excess reserves)? (Round to two decimal places and do not enter the currency symbol. If your answer is $6.114, enter 6.11. If your answer is $6.115, enter 6.12. If appropriate, remember to enter the - sign.)

Intermediate Algebra

19th Edition

ISBN:9780998625720

Author:Lynn Marecek

Publisher:Lynn Marecek

Chapter12: Sequences, Series And Binomial Theorem

Section12.3: Geometric Sequences And Series

Problem 12.58TI: What is the total effect on the economy of a government tax rebate of $500 to each household in...

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