2
answers
0
watching
89
views
29 Sep 2019
Assume that: C = Currency in circulation; D = demand deposit; E = excess reserves; R = required reserve.
a) Write an expression for the money multiplier?
b) Show the effect of increasing the required reserve ratio on the multiplier and consequently money supply?
c) Show the effect of increasing the excess reserve ratio on the multiplier and consequently money supply?
d) Show the effect of increasing the currency to deposit ratio on the multiplier and consequently money supply?
Assume that: C = Currency in circulation; D = demand deposit; E = excess reserves; R = required reserve.
a) Write an expression for the money multiplier?
b) Show the effect of increasing the required reserve ratio on the multiplier and consequently money supply?
c) Show the effect of increasing the excess reserve ratio on the multiplier and consequently money supply?
d) Show the effect of increasing the currency to deposit ratio on the multiplier and consequently money supply?
Chika IlonahLv10
29 Sep 2019
Already have an account? Log in
