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I attached below. In Country B, assume that banks have no excess reserves to start with and cash drain is 50%. Assume a required reserve

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In Country B, assume that banks have no excess reserves to start with and cash drain is 50%. Assume a required reserve ratio of 10%. The Central Bank of Country B decreases the monetary base (i.e. high-powered money) by 100,000 Liras. a) Explain how this policy will affect the money supply. Calculate the change in money supply and explain how the change comes about. b) How can the Central Bank decrease the monetary base by 100,000 Liras? ") Suggest an alternative tool that the Central Bank can employ to bring about the same change in the money supply as calculated in (a). d) What policy objectives could the Central Bank be pursuing so as to want to decrease the monetary base? e) What are some limitations of the Central Bank in achieving the objectives you mention in (d)

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