Suppose that the public wishes to hold 0.15 of any rise in its deposits as cash, and that banks wish to hold 0.08 of any rise in deposits in the form of reserves, what would be the value of the money multiplier?
Suppose that the public wishes to hold 0.15 of any rise in its deposits as cash, and that banks wish to hold 0.08 of any rise in deposits in the form of reserves, what would be the value of the money multiplier?
Chapter14: Banking And The Money Supply
Section: Chapter Questions
Problem 3.5P
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