Assume that the banking system has total reserves of Rs.200 billion. Assume also that required reserves are 12.5 percent of checking deposits and that banks hold no excess reserves and households hold no currency.If the State Bank of Pakistan now raises required reserves to 20 percent of deposits, Calculate the money multiplier?  What will be the effect on Reserves?  (write only one word “Increase”, “Decrease”, or “No Change” ) The amount of money supply will decline to

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