C = $1,250b R = $125b D = $1,500b Now suppose a shock causes banks to change the amount of reserves they hold relative t

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answerhappygod
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C = $1,250b R = $125b D = $1,500b Now suppose a shock causes banks to change the amount of reserves they hold relative t

Post by answerhappygod »

C = $1,250b
R = $125b
D = $1,500b
Now suppose a shock causes banks to change the amount ofreserves they hold relative to deposits sothat res changes to 0.0694. Suppose that whenthis happens,both cu and BASE do notchange. However, the change in res willaffects mm, M, C, R,and D.
Calculate the following:
mm =
M =
D =
C =
R =
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