Suppose that Maria makes a new cash deposit of $75,000. If the assumptions of the multiplier-deposit expansion process hold, (with the required reserve ratio set at 20%), this deposit will ________(INCREASE /DECREASE) the money supply by $____________ . (Note: Currency held by the public is counted in the money supply as part of M1.)
Suppose that Maria makes a new cash deposit of $75,000. If the assumptions of the multiplier-deposit expansion process hold, (with the required reserve ratio set at 20%), this deposit will ________(INCREASE /DECREASE) the money supply by $____________ . (Note: Currency held by the public is counted in the money supply as part of M1.)
Suppose that Maria makes a new cash deposit of $75,000. If the assumptions of the multiplier-deposit expansion process hold, (with the required reserve ratio set at 20%), this deposit will ________(INCREASE /DECREASE) the money supply by $____________ . (Note: Currency held by the public is counted in the money supply as part of M1.)
Suppose that Maria makes a new cash deposit of $75,000.
If the assumptions of the multiplier-deposit expansion process hold, (with the required reserve ratio set at 20%), this deposit will ________(INCREASE /DECREASE) the money supply by $____________
. (Note: Currency held by the public is counted in the money supply as part of M1.)
Definition Definition Minimum amount that a commercial bank must hold in liquid assets in order to fulfill central bank regulations.
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