Suppose that the target money reserve ration in the banking
Suppose that the target money reserve ration in the banking system is 20 percent, there is no cash drain, and all excess reserves are lent out. If Sam deposits a $50 bill in his bank account, then the money supply(M1) will increase by $200. Why?
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suppose that the target money reserve ration in the banking system is 20 percent there is no cash drain and all excess
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