Business, 03.04.2020 21:07 HOPING4632

The central bank of the fictitious country "Alpha" raises bank reserves by $500. What effect will the increase in bank reserves have on the money supply in each of the following situations: a. If the banking system is a 100% reserve banking system, the m oney supply will increase by $ b. The banking system is a fractional reserve banking system with a desired reserve deposit ratio of 0.5., the money supply will increase by $ .

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The central bank of the fictitious country "Alpha" raises bank reserves by $500. What effect will th...