If the required reserve ratio is 8 percent, currency in circulation is $350 billion, checkable deposits are $500 billion, and excess reserves total $100 billion, then what impact would a $100 million increase in the monetary base have on the money supply?
If the required reserve ratio is 8 percent, currency in circulation is $350 billion, checkable deposits are $500 billion, and excess reserves total $100 billion, then what impact would a $100 million increase in the monetary base have on the money supply?
Chapter25: Money Creation
Section: Chapter Questions
Problem 9SQ
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If the
deposits are $500 billion, and
$100 million increase in the monetary base have on the money supply?
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