The required reserve ratio is 0.05, the level of deposits is $4000, the level of currency held by the public is $500, the level of excess reserves is $500, the level of money market funds is $1,000 and the level of time deposits is $3,000. If the monetary base falls by $100, find the change in M2.

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The Answer of The required reserve ratio is 0.05, the level of deposits is $4000, the level of currency held by the public is $500, the level of excess reserves is $500, the level of money market funds is $1,000 and the level of time deposits is $3,000. If the monetary base falls by $100, find the change in M2.

The Required Reserve Ratio Is 0