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uppose banks keep no excess reserves and no individuals of firms hold on to cash. If someone suddenly discovers $12 million and deposits it in
uppose banks keep no excess reserves and no individuals of firms hold on to cash. If someone suddenly discovers $12 million and deposits it in a bank, explain what will happen to the money supply if the required reserve ratio is 10 percent. Write out the formula for money deposit multiplier.What are the two main goals of modern central banks? A. a. Strong Currency b. Price Stability B. a. Do the opposite of what elected chief executive and legislature is doing. b. Financial Stability C. a. Full Employment b. Price Stability D. a. Price Stability b. Financial Stability
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