Consider again an economy with the usual required reserve
Consider again an economy with the usual required reserve ratio (rr); economy-wide checking (demand deposits) of $400,000; total cash within banks of $100,000; cash held by the public of $36,000; and er = 0.16.
Calculate the "real-world" multiplier.
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tight contractionary money policya can be done by raising taxesb generally creates new jobsc lowers demand for
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consider an economy with the usual required reserve ratio rr economy-wide checking demand deposits of 400000 total cash
consider again an economy with the usual required reserve ratio rr economy-wide checking demand deposits of 400000
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a german mutual fund sells euros to a us bank for 20000 the mutual fund then uses these dollars to purchase a bond
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