Suppose that the required reserve ratio is 12.5 percent and you withdraw $65000 from Comerica Bank. a. What is the deposit multiplier? 8 b. What is the total decrease in deposits in the banking system? 520000 c. What is the change in the money supply? 455000
Suppose that the required reserve ratio is 12.5 percent and you withdraw $65000 from Comerica Bank. a. What is the deposit multiplier? 8 b. What is the total decrease in deposits in the banking system? 520000 c. What is the change in the money supply? 455000
Chapter15: Money Creation
Section: Chapter Questions
Problem 18SQ
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