Suppose there is $120 million of cash and that half of this cash is held in bank vaults as required reserves (that is, banks hold no excess reserves). How large will the money supply be if the required reserve ratio is 10%? 12.5%? 16.2/3%?
Your email address will not be published. Required fields are marked *
Comment
Name *
Email *
Website
Save my name, email, and website in this browser for the next time I comment.