If households’ currency-deposit ratio is 1.25, and they desire to

If households’ currency-deposit ratio is 1.25, and they desire to

  
If households’ currency-deposit ratio is 1.25, and they desire to maintain $9.25in liquid savings assets for each dollar in their checking accounts, what mustthe banks’ excess reserves ratio be if the money multiplier is 10? If the bankschanged their excess reserves ratio to one dollar for every $1,000 of transactiondeposits, compute the effect this would have on the money multiplier. 

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If households’ currency-deposit ratio is 1.25, and they desire to maintain $9.25in liquid savings assets for each dollar in their checking accounts, what mustthe banks’ excess reserves ratio be if the money multiplier is 10? If the bankschanged their excess reserves ratio to one dollar for every $1,000 of transactiondeposits, compute the effect this would have on the money multiplier. 

If households’ currency-deposit ratio is 1.25, and they desire to