If reserves in the banking system increase by $100, then checkable deposits will increase by $667...
If reserves in the banking system increase by $100, then checkable deposits will increase by $667 in the simple model of deposit creation when the required reserve ratio is
0.01.
0.05.
0.15.
0.20.
Homework Answers
Answer: 0.15
Calculation:
Required reserve ratio = $100 / $667 = 0.1499
Required reserve ratio = 0.15
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If reserves in the banking system increase by $100, then
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