Question
a.In this example, the reserve requirement is 10.5%.What is increase in deposits when the Fed buys $12.6 million in bonds from the First national Bank
a.In this example, the reserve requirement is 10.5%.What is increase in deposits when the Fed buys $12.6 million in bonds from the First national Bank (in this example, you need to use the simple deposit multiplier)?
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Mostly Harmless Econometrics An Empiricist's Companion
Authors: Joshua Angrist
1st Edition
1400829828, 9781400829828
