(Answered) Since 2016 reserve requirement for eu banks was lowered to

Management Studies

Since 2016 reserve requirement for EU banks was lowered to 1%.

If an EU bank receives 100,000 euros deposit, how much can the bank lend?

What is the value of the money multiplier?

What is going to happen with the money supply in the EU-zone?

Explain how it works and use all the markets involved. Including IS-LM.

Why do you think the ECB took that decision? Explain.

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