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Business, 27.11.2019 22:31 horcio8460
Suppose that the reserve requirement for checking deposit is 10% and taht banks do not hold any excess reserves. a- if the fed sells $1 million of government bonds what is the effect on the economy's reserves and mony supply? b-now suppose the fed lowers the reserve requirment to 5% od deposits as excess reserves. why might banks do so? what is the overall change in the money multiplier and the money supply as a result of these actions?
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Suppose that the reserve requirement for checking deposit is 10% and taht banks do not hold any exce...
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