If banks have a desired reserve ratio of 0.20, there is no currency drain, and Erin deposits
Question:
a. The bank's excess reserves as soon as Erin makes her deposit.
b. The maximum amount of loans that the banking system can make.
c. The increase in total deposits when the banks have no excess reserves.
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a The banks excess reserves are 40 Excess reserves are equal to actual reserves minus desired reserv...View the full answer
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