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Answer to Question #56774 in Macroeconomics for ikram mohamed
Question #56774
suppose Mr.Y deposits AED 100.000 into a one-year certificate of deposit at 5% interest.the central bank sets the reserve ratio for the banks at 10%.
a.illustrate how the banks create money with the hep of given information.(show first 5 steps)
b.calculate the total money creation in the economy with the help of formula.
a.illustrate how the banks create money with the hep of given information.(show first 5 steps)
b.calculate the total money creation in the economy with the help of formula.
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