Business, 21.12.2019 00:31 lilpump3506

Suppose the federal reserve sets the reserve requirement at 12 percent, banks hold no excess reserves, and no additional currency is held. instructions: in part a, round your answer to 2 decimal place. in parts b and c, enter your answers as whole numbers. include any negative signs if necessary.

(a) what is the money multiplier?
(b) by how much will the total money supply change if the federal reserve changes the amount of reserves by -$80 million?
(c) suppose the federal reserve wants to increase the total money supply by $500 million. by how much should the federal reserve change reserves to achieve this goal?

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Suppose the federal reserve sets the reserve requirement at 12 percent, banks hold no excess reserve...

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