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In Macroland, currency held by the public is 3,000 ecans, bank reserves are 200 ecans, and the desired (and current) reserve/deposit ratio is 12.5 percent.
In Macroland, currency held by the public is 3,000 ecans, bank reserves are 200 ecans, and the desired (and current) reserve/deposit ratio is 12.5 percent. If commercial banks borrow 0.125 econs in reserves from the Central Bank through discount window lending, then the money supply in Macroland will , assuming that the public does not wish to change the amount of currency it holds. Multiple Choice O increase to 5,600 scans O increase to 5,100 econs O increase to 8.600 econs increase to 3,700 econs
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