Advanced Placement (AP), 18.10.2020 15:01 martina28
John deposits $1,000 in cash into First Street Bank and assume that the required reserve ratio is 10%. But now assume that each recipient of a bank loan keeps half the loan in cash and deposits the rest. Trace out the resulting expansion in the money supply through at least three rounds.
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John deposits $1,000 in cash into First Street Bank and assume that the required reserve ratio is 10...
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