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Answer to Question #87205 in Macroeconomics for Reanna

Question #87205
denote the banks desired reserve ratio as x and the public's desired ratio of cash to bank deposits as b.Then the level of high powered money in theeconomy will be what?
1
Expert's answer
2019-04-02T10:04:14-0400

If the banks desired reserve ratio is x and the public's desired ratio of cash to bank deposits is b, then the level of high powered money in the economy will be b/x.


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