Elucidate how much the money supply will rise in response

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Q. The Federal gov't establishes its budget to decide what programa to provide and how to pay for them. How does fiscal policy differ from this ordinary fiscal activity of budgeting?

Q. In Westlandia, the public holds 50% of M1 in the form of currency, and the required reserve ratio is 20%.
Elucidate how much the money supply will rise in response to a new cash deposit of $500 by completing the accompanying table.

Reference no: EM1347073

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