Assume the required reserves ratio

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Assume the required reserves ratio is .15,

a. What are the reserves for a bank with $13B in deposits?

b. What is the money multiplier?

c. How much will the money supply increase, assuming the above money multiplier, given a $1T in new deposits?

d. What would happen to the money supply if the required reserves ration increases to .3?

Reference no: EM13898740

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