O M1 = $800 %3D O M1 = $900 %3D M1

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter21: The Monetary System
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If the required reserve ratio is 0.1, but the banks' own reserve ratio is 0.2, public's cash is $200 and
BR = $100, then
O M1 = $800O
O M1 = $900
O M1 = $700
O money supply falls by $2,000
Transcribed Image Text:If the required reserve ratio is 0.1, but the banks' own reserve ratio is 0.2, public's cash is $200 and BR = $100, then O M1 = $800O O M1 = $900 O M1 = $700 O money supply falls by $2,000
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