Use the following information for question 8-11. Assume the…
Use the following information for question 8-11. Assume the required reserve rate is 8%. Total deposits in the banking system are $500 billion Currency in circulation is $100 billion. Total reserves in the banking system are $60 billion $20 billion excess reserves in the banking system Calculate the advanced money multiplier. Hint: Use your answers in the previous two questions in your calculation
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