3. Redo the example of Gorgonzola in the text (see Tables 9.3 to 9.7 ), assuming that:...
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3. Redo the example of Gorgonzola in the text (see Tables 9.3 to 9.7 ), assuming that: LO 9.3 MEDIUM a)initially the Gorgonzolan central bank puts 2 000 000 guilders into circulation b)commercial banks desire to hold reserves of 20 per cent of deposits. As in the text, assume that the public holds no currency. Show the consolidated balance sheets of Gorgonzolan commercial banks after the initial deposits (compare with Table 9.3 ), one round of loans (compare with Table 9.4 ), the first redeposit of guilders (compare with Table 9.5 ) and two rounds of loans and redeposits (Table 9.6 ). What are the final values of bank
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