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How much m2 is generated from a $100 increase in monetary

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Reference no: EM13293501

1a. The public's preference is to hold their money as half cash, half demand deposit. Reserve requirement is 25%. Determine monetary multiplier.

b. They now decide to split off half the cash into savings accounts. How much M2 is generated from a $100 increase in monetary base?

Reference no: EM13293501

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