Compute the impact on the money multiplier of an increase in desired currency holdings from 10 percent

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Compute the impact on the money multiplier of an increase in desired currency holdings from 10 percent to 15 percent of deposits when the reserve requirement is 10 percent of deposits, and banks’ desired excess reserves are 3 percent of deposits.

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Money Banking And Financial Markets

ISBN: 9780073375908

3rd Edition

Authors: Stephen Cecchetti, Kermit Schoenholtz

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