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In the problem, assume that reserve requirements that must be maintained in cash or at the Federal Reserve are 10% on demand deposits and 0%
In the problem, assume that reserve requirements that must be maintained in cash or at the Federal Reserve are 10% on demand deposits and 0% on time deposits. Please fill in the aggregate balance sheet for member banks for the fiscal policy problem. a. Fill in column 2 with this part. (Assume column 1 is the starting position.) Because of the nature of the economy and the large federal deficit, the US. Government nances a $44,000 deficit by selling $20,000 of new bonds to banks and $24,000 of new bonds to non-banks. How would your answer possibly change in a Global economy? Banks Assets Liabilities ARES ADD $ ASec $ $ securities Demand Deposits Bank RR = .10 ($_)- 84,000 = _$
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