What tools could cbp used to change money supply
Problem: Central Bank of Pandesian (CBP) used the required reserve ratio to adjust their money supply to first fight against unemployment and then against inflation. What other tools could CBP have used to change their money supply?
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To that end, CBP cuts the required reserve ratio to 5%. How does my $1,000 deposit change the Pandesian money supply? Explain by using the T-account.
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Central Bank of Pandesian (CBP) used the required reserve ratio to adjust their money supply to first fight against unemployment and then against inflation.
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