Question
As we know, the money supply won't increase until the bank loans the $100. If the required reserve ratio is 6% how much will the
As we know, the money supply won't increase until the bank loans the $100. If the required reserve ratio is 6% how much will the money supply ultimately increase once this new deposit has gone all the way through the system? What is the money multiplier in this case?
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Managing in a Global Economy Demystifying International Macroeconomics
Authors: John E. Marthinsen
2nd edition
128505542X, 978-1305176157, 1305176154, 978-1285055428
