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Assume that Miss A deposits RM50,000 with Bank Y. Assume also that required reserves are 20 percent of checking deposits, and that banks hold no
Assume that Miss A deposits RM50,000 with Bank Y. Assume also that required reserves are 20 percent of checking deposits, and that banks hold no excess reserves and households hold no currency. Explain the detailed process of money creation in the economy and calculate the size of the money multiplier. Demonstrate your answers using banks' T-account.
this is my exercise, can you help me pls. thank you professor
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