Unformatted text preview: billion, If the bank has to hold on to 12.5% it decreases the money supply. 60 billion, into the bank, 52.5 billion is lent out as opposed to 54 billion For 16.33% only 50.196 gets lent out, decreasing the money supply further....
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This note was uploaded on 04/17/2008 for the course ECO 101 taught by Professor Cote during the Spring '08 term at University of Maine Orono .
- Spring '08