B3. An economy has cash ratio of 20%, actual reserve ratio of 10%. If the money base is $1000 billion a) Calculate money
Posted: Fri Jul 01, 2022 7:52 am
B3. An economy has cash ratio of 20%, actual reserve ratio of 10%. If the money base is $1000 billion a) Calculate money multiplier and the quantity of money? b) How does Central bank use open market operation to decrease money stock by $600 billion?