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Compute the impact on the money multiplier of a fall in the currency-todeposit ratio from 10 percent to 8 percent when the reserve requirement is
Compute the impact on the money multiplier of a fall in the currency-todeposit ratio from 10 percent to 8 percent when the reserve requirement is 10 percent of deposits, and banks' desired excess reserves are 3 percent of deposits. Instructions: Enter your responses rounded to two decimal places. When desired currency holdings =10% of deposits, m= When desired currency holdings =8% of deposits, m=
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