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Business, 11.12.2019 18:31 zanaplen27

When the real interest rate increases, banks have an incentive to lend a greater portion of their deposits, which reduces the reserve-deposit ratio in particular, suppose that (νœƒ).νœƒ=0.4―2ν‘Ÿ,where is the reserve-deposit ratio and r is the real interest rate. the currency-deposit ratio νœƒ(ν‘ν‘Ÿ)is 0.4, the price level is fixed at 1.0, and the monetary base is 60. the real quantity of money

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