3. Suppose that the required reserve ratio is 0.12 for deposits and there are no excess reserves. Suppose alsothat the total demand for currency is equal to 0.3 times deposits.a. If total reserves are $40 billion, what is the level of the money supply?b. By how much does the money supply change if the Fed increases the required reserve ratio to 0.20? Assume thattotal reserves are unchanged at $40 billion.
https://trustedpaperwriters.com/wp-content/uploads/2019/12/157544039158860773-300x54.png 0 0 Steve Kamau https://trustedpaperwriters.com/wp-content/uploads/2019/12/157544039158860773-300x54.png Steve Kamau2021-12-30 05:51:172021-12-30 05:51:17Suppose that the required reserve ratio is 0.12