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A commercial bank has $5,000 in reserves, $15,000 in loans, and $20,000 of deposits. If the Fed raised the reserve requirement from 10 percent to
A commercial bank has $5,000 in reserves, $15,000 in loans, and $20,000 of deposits. If the Fed raised the reserve requirement from 10 percent to 20 percent, what will be the change in excess reserves? (if excess reserves decrease put minus sign in front of the answer).
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