Business, 20.12.2019 20:31 ligittiger12806

Suppose the reserve requirement is initially set at 10%. instructions: in parts a, b, and d, enter your answers as a whole number. in part c, round your answer to two decimal places.

a. at a reserve requirement of 10%, what is the value of the money multiplier? 10
b. if the reserve requirement is 10% and the fed increases reserves by $20 billion, what is the total increase in the money supply? $ 200 billion
c. suppose the fed raises the reserve requirement to 16%. what is the value of the money multiplier now? 6.25
d. assume the reserve requirement is 16%. if the fed increases reserves by $20 billion, what is the total increase in the money supply? $ 125 billion
e. raising the reserve requirement from 10% to 16% the money multiplier and the money supply.

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Suppose the reserve requirement is initially set at 10%. instructions: in parts a, b, and d, enter...

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