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Author Question: Why does the holding of excess reserves by banks and the holding of currency by households and firms ... (Read 30 times)

Diane

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on: Mar 16, 2019

Question 1

Scenario 14-1








Consider the information above for a simple economy. Assume there are no traveler's checks.






Refer to Scenario 14-1.  M2 in this simple economy equals


◦ $3,000.
◦ $8,000.
◦ $14,000.
◦ $21,000.

Question 2

Why does the holding of excess reserves by banks and the holding of currency by households and firms cause the real-world deposit multiplier to be less than the simple deposit multiplier?

Macroeconomics ¦ Hubbard, O'Brien ¦ 6th Edition
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Marked as best answer by Diane on Mar 16, 2019

LVPMS

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Reply #1 on: Mar 16, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Diane

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Reply 2 on: Mar 16, 2019
Great answer, keep it coming :)

billybob123

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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