What should happen to the supply of money
If there are no excess reserves in the banking system and $1 billion in new reserves are created by the federal reserve, what should happen to the supply of money? Would your answer be different if the reserve requirement were 10% instead of 15%?
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If there are no excess reserves in the banking system and $1 billion in new reserves are created by the federal reserve, what should happen to the supply of money?
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