BU204 Unit 7 Assignment
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This
section deals with increase money supply given two scenarios (see “a” and “b”
below).
In Westlandia, the public holds 50% of
money one (M1) in the form of currency, and the required reserve ratio is 20%.
Estimate how much the money supply will
increase in response to a new cash deposit of $500 by completing the
accompanying table
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