Business, 10.12.2019 06:31 AmbitiousAndProud

Assume that the banking system has total reserves of $180 billion. assume also that required reserves are 20 percent of checking deposits and that banks hold no excess reserves and households hold no currency. the new money multiplier is __ , and the money supply is to $ billion. suppose the fed raises required reserves to 25
percent of deposits.
the new money multiplier , and the money supply ( increases/ decreases) $billion.

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Assume that the banking system has total reserves of $180 billion. assume also that required reserve...

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