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How money multiplies and the total increase in money supply

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Reference no: EM132606175

Given the following ratios, show how money multiplies and the total increase in money supply if the monetary base (MH) increases by $520. Your answer should include the changes in currency in circulation (C), deposits (D), required reserves (R) and loans disbursed by commercial bank (L).

b= C/D = 0.25

x = R/D= 0.12

Reference no: EM132606175

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