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Consider the following aggregated t-table for the banking system of Tycho: Presume the current reserve ratio is the banks target reserve ratio Assets Liabilities Reserves:

Consider the following aggregated t-table for the banking system of Tycho: Presume the current reserve ratio is the banks target reserve ratio Assets Liabilities Reserves: Deposits: 120 Loans: 85 If the people of Tycho have a currency ratio of 0.20. The financial intermediaries of Tycho decide to increase their Target Reserve Ratio by 75bps Compute the change in the money supply due to this decision

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