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Social Studies, 27.11.2019 03:31 bobbye001
Assume that total reserves are equal to $200 and total checkable bank deposits are equal to $1,000. also assume that the public does not hold any currency and banks hold no excess reserves. now suppose that the required reserve ratio falls from 20% to 10%. trace out how this leads to an expansion in bank deposits.
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Assume that total reserves are equal to $200 and total checkable bank deposits are equal to $1,000....
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