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Use Balance Sheets to show the effects of this transaction. (5) In direct consequence of this transaction, What is the amount and direction of change
- Use Balance Sheets to show the effects of this transaction. (5)
- In direct consequence of this transaction, "What is the amount and direction of change in Narnia's money supply?" (2)
- If, prior to this transaction, the commercial banks had no excess reserves, and if their required reserve ratio is 10%, determine 1)the amount of excess reserves now and 2) the size of the money multiplier. (5)
- Construct and fill in two Balance Sheets to show the additional changes that would result if the commercial banks decided to loan out all their newly acquired excess reserves. (5)
- What is the direction and magnitude of change in the money supply resulting from the total effect of the Bank of Narnia's open-market purchase of government securities.
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