uppose an individual deposits $4,000 into her chequing account, which eventually leads banks to increase cash reserves of $4,000 and initiates $46,000 in additional loans. The target reserve ratio is [blank1]%. Suppose an individual makes a new deposit of $15,250. If the targeted reserve ratio is 12.5%, calculate the value of new loans generated in the economy.
uppose an individual deposits $4,000 into her chequing account, which eventually leads banks to increase cash reserves of $4,000 and initiates $46,000 in additional loans. The target reserve ratio is [blank1]%. Suppose an individual makes a new deposit of $15,250. If the targeted reserve ratio is 12.5%, calculate the value of new loans generated in the economy.
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter29: Interest, Rent, And Profit
Section: Chapter Questions
Problem 7QP
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uppose an individual deposits $4,000 into her chequing account, which eventually leads banks to increase cash reserves of $4,000 and initiates $46,000 in additional loans. The target reserve ratio is [blank1]%.
Suppose an individual makes a new deposit of $15,250. If the targeted reserve ratio is 12.5%, calculate the value of new loans generated in the economy.
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