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(b). If the private deposit-taking institutions (i.e., the banks) had INSTEAD agreed to decrease BOTH their desired idle excess cash reserves against both demand and

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(b). If the private deposit-taking institutions (i.e., the banks) had INSTEAD agreed to decrease BOTH their desired idle excess cash reserves against both demand and term deposits by 30% each, what would have been the percentage change in ONLY the broad money supply? Illustrate with the appropriate diagram and comment fully on your answer. (15 points)

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