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Next, suppose that Pandesian economy enters a recession. To fight against the unemployment created by the recession, Central Bank of Pandesian (CBP) decides to expand
Next, suppose that Pandesian economy enters a recession. To fight against the unemployment created by the recession, Central Bank of Pandesian (CBP) decides to expand the Pandesian money supply. To that end, CBP cuts the required reserve ratio to 5% (recall that used to be 10% previously). How does my $1,000 deposit change the Pandesian money supply? Explain by using the T-account
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