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Now suppose a shock causes banks to change the amount of reserves they hold relative to deposits so that res changes to 0.0694. Suppose that
Now suppose a shock causes banks to change the amount of reserves they hold relative to deposits so that res changes to 0.0694. Suppose that when this happens, both cu and BASE do not change. However, the change in res will affects mm, M, C, R, and D. Calculate the following: a) (S)Money Multiplier (mm): (carry out to four decimals) f) (5)Money Supply (M): g) (5)Bank Deposits (D): h) (5)Currency held by the public (C): i) (5)Bank Reserves (R):
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