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Economics

Assume that the following data describe the condition of the banking system:

Total Reserves $200 billion

Transactions Deposited $700 billion

Cash held by public $100 billion

Reserve Requirement 0.20

(a) How large is the money supply (M1)?

(b) How large are required reserves?

(d) By how much could the banks increase their lending activity?

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M9529355

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