Suppose the reserve ratio changes from 10% to 20%,with all else unchanged and banks fully loaned out.Does the money supply in the economy increase or decrease? Why? Use the simple money multiplier to illustrate your answer.

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The Answer of Suppose the reserve ratio changes from 10% to 20%,with all else unchanged and banks fully loaned out.Does the money supply in the economy increase or decrease? Why? Use the simple money multiplier to illustrate your answer.

Suppose the Reserve Ratio Changes from 10% to 20%,with All