Question
1. If the supply of new reserves in banks is 100 million, the reserve requirement is .1 (10%), and the banks are fully lent out,
1. If the supply of new reserves in banks is 100 million, the reserve requirement is .1 (10%), and the banks are fully lent out, what is the total amount of loans? What is the total new money supply?
2.Same question, 100 million in new reserves, but now there is a reserve requirement of 20%. How many loans? How much new money supply?
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Macroeconomics
Authors: Paul Krugman, Robin Wells, Iris Au, Jack Parkinson
3rd Canadian edition
1319120083, 1319120085, 1319190111, 9781319190118, 978-1319120054
