What happens to cash and deposits when: • cr = 0 • rr = 0.2 • Initial cash = $5000 How would the above change if the cr began to rise?

ECON MACRO
5th Edition
ISBN:9781337000529
Author:William A. McEachern
Publisher:William A. McEachern
Chapter14: Banking And The Money Supply
Section: Chapter Questions
Problem 2.2P
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What happens to cash and deposits when:
● cr=0
• rr = 0.2
• Initial cash = $5000
How would the above change if the cr began to rise?
Transcribed Image Text:What happens to cash and deposits when: ● cr=0 • rr = 0.2 • Initial cash = $5000 How would the above change if the cr began to rise?
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