Determine the final equilibrium values

Reference no: EM13183638

Public sentiment now changes such that depositors cut their cash holding in half and deposit the other half in time deposit accounts. The reserve requirement on DDs remains 25%, on TDs it remains zero, "m" remains 0, and banks continue to hold no excess reserves. Determine (quantify) the final equilibrium values for MB, M1, and M2.

Reference no: EM13183638

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