2. Take the example of Silas depositing his $1,000 in cash into First Street Bank and assume...

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2. Take the example of Silas depositing his $1,000 in cash into First Street Bank and assume that the required reserve ratio is 10%. But now assume that each time someone receives a bank loan, he or she keeps half the loan in cash. Trace out the resulting expansion in the money supply

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Essentials Of Economics

ISBN: 9781429218290

2nd Edition

Authors: Paul Krugman, Robin Wells, Kathryn Graddy

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