Suppose that you are in an economy with reserve requirements are equal to 14%, and cash drain is equal to 5%. This economy currently has $6,000 total banking deposits in the banking system. All of the banks have zero capital. If the Central Bank lowers the reserve requirements from 14% tp 8 %, then what will be the increase in the quantity of total bank deposits in the banking system? Note: round all answers to two decimal places. Do not include currency signs in your answer.

Suppose that you are in an economy with reserve requirements are equal to 14%, and cash drain is equal to 5%. This economy currently has $6,000 total banking deposits in the banking system. All of the banks have zero capital. If the Central Bank lowers the reserve requirements from 14% tp 8 %, then what will be the increase in the quantity of total bank deposits in the banking system? Note: round all answers to two decimal places. Do not include currency signs in your answer.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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