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Assume that the banking system has total reserves of $882 billion. Assume also that required reserves are 42 percent and that banks do not hold

Assume that the banking system has total reserves of $882 billion.

Assume also that required reserves are 42 percent and that banks do not hold any excess reserves and households hold no currency.

5. What is the money multiplier?2.38

6. What is the level of deposits?

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