Suppose that liabilities of the Central Bank are 90% reserves
and 10% currency, and currency is not held by banks. Further, a 30%
reserve/deposit limit for banks exists, and households hold 10% of
their assets in currency, and the rest in deposits. A $1 increase
in central bank liabilities at the stated 90/10 ratio leads to what
$ increase in M2? [please answer the question NOT in %, but in
absolute numbers]
Suppose that liabilities of the Central Bank are 90% reserves and 10% currency, and currency is not held by banks. Furth
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