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Business, 15.12.2021 17:10 Cheyenneross366

Suppose the required reserve ratio, rrr, on demand deposits is 20%. Suppose that when people in the particular economy of Greenway buy government securities from their central bank (which is also called the Fed) they insist on paying the Fed with cash (called Green Notes) they had in their piggy banks. As compared to an economy where everyone keeps all their money as demand deposits in commercial banks, the odd behavior of people in Greenway will tend to

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Suppose the required reserve ratio, rrr, on demand deposits is 20%. Suppose that when people in the...
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