If martha finds 10000 under her mattress and deposits it in


If Martha finds $10,000 under her mattress and deposits it in a demand deposit, by how much may the deposit expand the total money supply? Assume that the legal reserve requirement (required reserves ratio) is 20%. What is the effect of raising the legal reserve requirement to 50%?

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Econometrics: If martha finds 10000 under her mattress and deposits it in
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