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The Governor of the Central Bank of the Banana Republic informs you that he desires the economy to achieve a currency drain ratio that is
The Governor of the Central Bank of the Banana Republic informs you that he desires the economy to achieve a currency drain ratio that is one quarter (1/4) of the desired reserve ratio of all financial institutions in that economy. Moreover, he wants the money multiplier of this economy to be 8.2.
It asks you to calculate the value of the coefficient of the desired reserves of all financial institutions in the economy of the banana republic.
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