SOLUTION: The SIMPLEX financial system is characterized by a required reserve ratio of 11 percent; initial excess reserves are $1 million, and there are no currency or other leakages.
a. W
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Question 566784: The SIMPLEX financial system is characterized by a required reserve ratio of 11 percent; initial excess reserves are $1 million, and there are no currency or other leakages.
a. What would be the maximum amount of checkable deposits after deposit expansion, and what would be the money multiplier?
b. How would your answer in (a) change if the reserve requirement had been 9 percent? Answer by solver91311(24713) (Show Source):
