formulasheet-quiz12 - Money multiplier = 1/required reserve...

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Econ 210 Quiz #12 Chapter 17 Monetary base = cash in the hands of the nonbank public + bank reserves Bank reserves = vault cash + deposits at Fed Change in money supply = change in the monetary base x 1/required reserve ratio
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Unformatted text preview: Money multiplier = 1/required reserve ratio Equation of exchange : MV = PY (M=money supply, V=velocity, P=price level, Y=real GDP)...
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