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2. Monetary Data: Deposits (D) $1,000 Excess Reserves (ER) $150 Required Reserves (RR) $100 Currency (C) $500 a. If the Fed were to lower the %RR to 75%, the potential money supply would (increase or decrease ) by $

2. Monetary Data: Deposits (D) $1,000 Excess Reserves (ER) $150 Required Reserves (RR) $100 Currency (C) $500 a. If the Fed were to lower the %RR to 75%, the potential money supply would (increase or decrease ) by $

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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can someone please explain how my prof did this? answer to a)2,500 answer to b) is +$75 in both blanks and c) is 750 but i dont understand how he did it and he wont help me 2. Monetary Data: Deposits (D) $1,000 Excess Reserves (ER) $150 Required Reserves (RR) $100 Currency (C) $500 a. If the Fed were to lower the %RR to 75%, the potential money supply would (increase or decrease ) by $_ b. Suppose that the Fed aims to increase the actual money supply by 10%. On the following t-accounts show what the Fed should do using open market operations: The Fed The Banking System c. The Fed's action in item "b." would (increase or decrease) the potential money sup- ply by $
Transcribed Image Text:can someone please explain how my prof did this? answer to a)2,500 answer to b) is +$75 in both blanks and c) is 750 but i dont understand how he did it and he wont help me 2. Monetary Data: Deposits (D) $1,000 Excess Reserves (ER) $150 Required Reserves (RR) $100 Currency (C) $500 a. If the Fed were to lower the %RR to 75%, the potential money supply would (increase or decrease ) by $_ b. Suppose that the Fed aims to increase the actual money supply by 10%. On the following t-accounts show what the Fed should do using open market operations: The Fed The Banking System c. The Fed's action in item "b." would (increase or decrease) the potential money sup- ply by $
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