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Macroeconomics

Problem Set 4

Dr. Robin Dhakal

Q1.

Suppose you deposit ​$2,000 cash into your checking account. By how much will the total money supply increase as a result when the required reserve ratio is 0.2​0?

Q2.

Suppose the reserve requirement is15​%. What is the effect on total checkable deposits in the economy if bank reserves increase by ​$40 billion?

Dr. Dhakal

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