Problem
Calculate the Impact of a Change in the Reserve Ratio Suppose that the Fed decided to increase the reserve ratio from 10 to 12.5 percent. In theory, how would this change the value of the money multiplier? What would this do to the amount of each checking deposit that banks could lend? How would this decision affect interest rates and the economy? Explain your answer.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.