Able Deposits The Initial Required Reserve Ratio Is 10 The Commercial Banks Foll

Able deposits; the initial required reserve ratio is 10%. The commercial banks follow a policy of holding no excess reserves. The public holds no currency, only checkable deposits in the banking system. A. How will the money supply change if the required reserve ratio falls to 5%? B. How will the money supply change if the required reserve ratio rises to 25%?

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