Suppose the simplified consolidated balance sheet shown below is for the entire commercial banking system. All figures are in billions. The reserve ratio is 25 percent. 11eb7128_93d3_be02_8de8_f784ece941c9_SM2869_00 b. Answer the questions in part a assuming the reserve ratio is 20 percent. Explain the resulting difference in the lending ability of the commercial banking system.

Macroeconomics 1st Edition by Campbell McConnell,Stanley Brue,Sean Flynn

النسخة 1الرقم المعياري الدولي: 978-0077230975

Macroeconomics 1st Edition by Campbell McConnell,Stanley Brue,Sean Flynn

النسخة 1الرقم المعياري الدولي: 978-0077230975

تمرين 13

Suppose the simplified consolidated balance sheet shown below is for the entire commercial banking system. All figures are in billions. The reserve ratio is 25 percent.

b. Answer the questions in part a assuming the reserve ratio is 20 percent. Explain the resulting difference in the lending ability of the commercial banking system.

التوضيح

موثّق

$260 billion. Monetary multiplier = 5 ...