Suppose that the reserve ratio is given by: re = 0.4 2r, where r is the interest rate. Thecurrency-deposit ratio (cu) is 0.4 and the monetary base (H) is 60. The money demand(L) is given by:L = 0.5Y 10r
Suppose that the reserve ratio is given by: re = 0.4 2r, where r is the interest rate. Thecurrency-deposit ratio (cu) is 0.4 and the monetary base (H) is 60. The money demand(L) is given by:L = 0.5Y 10r
Chapter25: Money Creation
Section: Chapter Questions
Problem 9SQP
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Suppose that the reserve ratio is given by: re = 0.4 2r, where r is the interest rate. Thecurrency-deposit ratio (cu) is 0.4 and the monetary base (H) is 60. The money demand(L) is given by:L = 0.5Y 10r
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